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Journal of African Business Issue 5

Welcome to The Journal of African Business - a unique guide to business and investment in Africa. Every edition carries editorial copy covering the following general topics, with a wide range of subjects within each broader economic sector: energy; mining and exploration; trade; finance; technology and tourism. In addition to this, special features on topical matters will be published periodically, along with country profiles. In this edition, the in-depth interview with Aggreko Head of Sales, Southern East Africa, Max Schiff, makes clear how important captive power is for the future viability of a wide variety of projects in Africa. As Schiff points out, the extractives industry has long been a leader in the application of captive power, given the remote location of many mining operations, but the flexibility and ESG advantages that captive power using renewables offers is making it an ever-more attractive option for many different sectors.

Welcome to The Journal of African Business - a unique guide to business and investment in Africa.
Every edition carries editorial copy covering the following general topics, with a wide range of subjects within each broader economic sector: energy; mining and exploration; trade; finance; technology and tourism.
In addition to this, special features on topical matters will be published periodically, along with country profiles.
In this edition, the in-depth interview with Aggreko Head of Sales, Southern East Africa, Max Schiff, makes clear how important captive power is for the future viability of a wide variety of projects in Africa. As Schiff points out, the extractives industry has long been a leader in the application of captive power, given the remote location of many mining operations, but the flexibility and ESG advantages that captive power using renewables offers is making it an ever-more attractive option for many different sectors.

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THE JOURNAL OF<br />

AFRICAN<br />

BUSINESS<br />

AFRICAN MINING IN THE ESG ERA<br />

Investing in the Energy Transition, ESG and<br />

the Economies<br />

A NEW ENERGY BANK FOR<br />

AFRICAN OIL AND GAS<br />

WHAT DOES<br />

THE AFCFTA<br />

MEAN FOR IP?<br />

COUNTRY PROFILES:<br />

ANGOLA & MAURITIUS<br />

MITIGATING THE GLOBAL<br />

LOGISTICS CRUNCH<br />

Diversification is the way to go<br />

for <strong>African</strong> business<br />

THE WINDS OF ENERGY CHANGE<br />

ARE BLOWING IN AFRICA<br />

JAN / FEB / MAR 2023<br />

THE CASE FOR CAPTIVE POWER<br />

Aggreko’s MAX SCHIFF lays out the argument for captive power<br />

as an energy solution in many and varied <strong>African</strong> contexts


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FOREWORD<br />

<strong>Journal</strong> <strong>of</strong><br />

<strong>African</strong> <strong>Business</strong><br />

A unique guide to business and investment in Africa.<br />

Welcome to The <strong>Journal</strong> <strong>of</strong> <strong>African</strong> <strong>Business</strong>. The first issue <strong>of</strong> the journal was<br />

published in 2020 as an annual publication. Since then, the quarterly format has<br />

been adopted, giving our team more opportunities to bring readers up-to-date<br />

information and opinions and <strong>of</strong>fer our clients increased exposure at specific times<br />

<strong>of</strong> the year, either related to events and conferences or in conjunction with feature<br />

articles on specific topics.<br />

Every edition carries editorial copy covering the following general topics, with<br />

a wide range <strong>of</strong> subjects within each broader economic sector: energy; mining and<br />

exploration; trade; finance; technology and tourism.<br />

In addition to this, special features on topical matters will be published<br />

THE JOURNAL OF<br />

AFRICAN<br />

BUSINESS<br />

JAN / FEB / MAR 2023<br />

AFRICAN MINING IN THE ESG ERA<br />

Investing in the Energy Transition, ESG and<br />

the Economies<br />

A NEW ENERGY BANK FOR<br />

AFRICAN OIL AND GAS<br />

WHAT DOES<br />

THE AFCFTA<br />

MEAN FOR IP?<br />

COUNTRY PROFILES:<br />

ANGOLA & MAURITIUS<br />

MITIGATING THE GLOBAL<br />

LOGISTICS CRUNCH<br />

Diversification is the way to go<br />

for <strong>African</strong> business<br />

THE WINDS OF ENERGY CHANGE<br />

ARE BLOWING IN AFRICA<br />

THE CASE FOR CAPTIVE POWER<br />

Aggreko’s MAX SCHIFF lays out the argument for captive power<br />

as an energy solution in many and varied <strong>African</strong> contexts<br />

periodically, along with country pr<strong>of</strong>iles.<br />

The positive reception accorded the first<br />

issues <strong>of</strong> The <strong>Journal</strong> <strong>of</strong> <strong>African</strong> <strong>Business</strong><br />

was encouraging and we are optimistic<br />

that this publication and future issues will<br />

continue to meet the need for timely and<br />

relevant information in an exciting time for<br />

<strong>African</strong> business.<br />

In this edition, the in-depth interview<br />

with Aggreko Head <strong>of</strong> Sales, Southern<br />

East Africa, Max Schiff, makes clear how<br />

important captive power is for the future<br />

viability <strong>of</strong> a wide variety <strong>of</strong> projects in<br />

Africa. As Schiff points out, the extractives<br />

industry has long been a leader in the application <strong>of</strong> captive power, given the remote<br />

location <strong>of</strong> many mining operations, but the flexibility and ESG advantages that<br />

captive power using renewables <strong>of</strong>fers is making it an ever-more attractive option<br />

for many different sectors.<br />

The two pr<strong>of</strong>iled countries in this issue are Angola and Mauritius.<br />

FTI Consulting has done a deep-dive into the challenges facing the <strong>African</strong><br />

mining sector in the era <strong>of</strong> enhanced environmental, social and governance<br />

reporting (ESG), the report on which is published here.<br />

Another article notes that Afreximbank and the <strong>African</strong> Petroleum Producers<br />

Organization (APPO) have signed a memorandum <strong>of</strong> understanding (MoU) for the<br />

creation <strong>of</strong> a multi-billion-dollar energy bank while renewable energy is the topic<br />

<strong>of</strong> an International Finance Corporation (IFC) study on Africa’s immense onshore<br />

wind potential is immense.<br />

Two partners at Spoor & Fisher interrogate the Intellectual Property<br />

considerations <strong>of</strong> the <strong>African</strong> Continental Free Trade Area, while Philip<br />

Myburgh, Head <strong>of</strong> Trade and Africa-China, <strong>Business</strong> and Commercial Clients<br />

for Standard Bank, comments on multiple factors which have caused turmoil in<br />

trade and logistics.<br />

Finally, two articles examine different aspects <strong>of</strong> tourism in Africa today. A brand<br />

initiative to find the “Best Places in Africa” has been announced and Zimbabwe has<br />

a smart new hotel on the banks <strong>of</strong> the Zambezi River.<br />

Global Africa Network is a proudly <strong>African</strong> company which has been producing<br />

region-specific business and investment guides since 2004, including South <strong>African</strong><br />

<strong>Business</strong> and Nigerian <strong>Business</strong>, in addition to its online investment promotion<br />

platform www.globalafricanetwork.com<br />

JOHN YOUNG<br />

Editor, <strong>Journal</strong> <strong>of</strong> <strong>African</strong> <strong>Business</strong><br />

Email: john.young@gan.co.za<br />

Editor: John Young<br />

Publishing director: Chris Whales<br />

Managing director: Clive During<br />

Online editor: Christ<strong>of</strong>f Scholtz<br />

Design: Simon Lewis. Production: Yonella Ncaba<br />

Ad sales: Venesia Fowler, Tennyson Naidoo,<br />

Sam Oliver, Tahlia Wyngaard, Gavin van<br />

der Merwe, Graeme February, Shiko Diala,<br />

Gabriel Venter and Vanessa Wallace<br />

Administration & accounts: Charlene<br />

Steynberg, Kathy Wootton<br />

Distribution & circulation manager: Edward MacDonald<br />

The <strong>Journal</strong> <strong>of</strong> <strong>African</strong> <strong>Business</strong> is<br />

published by Global Africa Network Media (Pty) Ltd<br />

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6200 | Email: info@gan.co.za<br />

Website: www.globalafricanetwork.com<br />

2<br />

No portion <strong>of</strong> this book may be reproduced without<br />

written consent <strong>of</strong> the copyright owner. The opinions<br />

expressed are not necessarily those <strong>of</strong> The <strong>Journal</strong> <strong>of</strong><br />

<strong>African</strong> <strong>Business</strong> magazine, nor the publisher, none <strong>of</strong><br />

whom accept liability <strong>of</strong> any nature arising out <strong>of</strong>, or<br />

in connection with, the contents <strong>of</strong> this publication.<br />

The publishers would like to express thanks to those<br />

who support this publication by their submission <strong>of</strong><br />

articles and with their advertising. All rights reserved.<br />

Printing: FA Print<br />

Member <strong>of</strong> the Audit Bureau <strong>of</strong> Circulations


Mauritius gained independence from the United Kingdom in 1968. English is the<br />

<strong>of</strong>ficial language <strong>of</strong> the legislative body but Creole is the dominant language with<br />

Bhojpuri and French accounting for about 10% between them.<br />

Just two years before independence, Britain expelled about 2 000 residents <strong>of</strong><br />

the Chagos archipelago and leased islands to the US for 50 years. A military base<br />

was built on the largest island, Diego Garcia. In 2019 the UN International Court<br />

<strong>of</strong> Justice gave a non-binding legal opinion that the islands had not been legally<br />

separated and that Britain should end its control.<br />

Former President Sir Anerood Jugnauth became Prime Minister for the third<br />

time in 2014 but resigned in 2017 to make way for his son Pravind Kumar Jugnauth,<br />

the leader <strong>of</strong> the Militant Socialist Movement party. The president is head <strong>of</strong> state in<br />

a Westminster-type system and the role is largely symbolic.<br />

Credit: Dominik Ruhl/Pexels<br />

Capital: Port Louis. Other towns/cities: Vacoas-Phoenix, Beau Bassin-Rose Hill, Curepipe,<br />

Quatre Bornes. Population: 1.3-million (2022). GDP: $14-billion (2019).<br />

Real GDP per capita: $19 500 (2020). Currency: Mauritian rupee.<br />

Regional Economic Community: Southern <strong>African</strong> Development Community (SADC),<br />

Common Market for Eastern and Southern Africa (COMESA), Indian Ocean Rim Association.<br />

Landmass: 2 040km 2 (all islands), Island <strong>of</strong> Mauritius 1 864km 2 . Coastline: 177km.<br />

Resources: Sugar cane, tea, banana, pulses, potatoes, fish.<br />

Main economic sectors: Sugar milling, textiles, tourism, financial services.<br />

Other sectors: Mining, chemicals, metal products, transport equipment,<br />

machinery. New sectors for investment: Creative sector (film),<br />

higher education, ICT, retail, medical tourism.<br />

Key projects: Positioning as a hub for the rest <strong>of</strong> Africa<br />

for logistics, re-export and trade. Smart city projects.<br />

Chief exports: Clothing, sugar cane, processed fish,<br />

molasses, cut flowers. Top export destinations: France,<br />

US, UK, South Africa, Madagascar, Italy, Spain.<br />

Top import sources: India, China, France, South Africa. Main imports:<br />

Chemicals, equipment, foodstuffs, manufactured goods, petroleum products.<br />

Infrastructure: Export Processing Zone; Sir Seewoosagur Ramgoolam<br />

International Airport at Plaisance about 50km from Port Louis, an airstrip at<br />

Plaine Corail on Rodrigues; 2 150km <strong>of</strong> roads, 98% paved; Port Louis harbour<br />

has a container terminal and terminals for sugar, oil, wheat and cement.<br />

ICT: Mobile subscriptions per 100 inhabitants: 150 (2020). Internet percentage <strong>of</strong><br />

population: 65% (2020). ICT Development Index 2017 (ITU) ranking: 1 in Africa,<br />

72 in world. Climate: Maritime subtropical modified by south-east trade winds. Cyclones<br />

can occur. Warm, dry winter (May to November); hot, wet, humid summer. A fertile<br />

central plateau is surrounded by mountains and the island is ringed by coral reefs.<br />

Religion: Hindu, Christian about 30% (majority Roman Catholic), Muslim, other.<br />

Global investors are shying away from<br />

hydrocarbons, leaving the continent<br />

without the investment it needs if<br />

it is to capitalise on its resources.<br />

Credit: Pixabay<br />

Sara Powell, Managing Director,<br />

Sustainability and ESG at FTI<br />

Consulting United Kingdom<br />

Lake Turkana Wind Farm is not<br />

only one <strong>of</strong> Africa’s biggest wind<br />

projects, it also, at $650-million,<br />

represents the single-largest<br />

private investment in Kenya.<br />

Kenya Power buys power from<br />

the facility, which generates<br />

310MW <strong>of</strong> energy. Credit: LTWP<br />

Please define “captive power”.<br />

There are numerous definitions and types <strong>of</strong> captive power. Most<br />

commonly it is defined as “behind the meter” energy, power that<br />

is generated at the user site, rather than imported from a wider<br />

grid transmission system via an energy meter.<br />

The scale, sources and applications <strong>of</strong> captive power differ<br />

significantly. While it could be at a household level, for this<br />

discussion we are talking about industrial and commercial<br />

applications. This may include manufacturing plants with onsite<br />

generation, such as sugar factories using thermal power from<br />

burning bagasse to generate steam to drive a turbine, industrial<br />

Remote mining destinations such as this one in the Democratic Republic <strong>of</strong> the<br />

Congo must use captive power to support their operations. Credit: Aggreko<br />

Pan-<strong>African</strong> multilateral trade finance institution, the <strong>African</strong><br />

Export-Import Bank (Afreximbank), has signed a Memorandum<br />

<strong>of</strong> Understanding (MoU) with the <strong>African</strong> Petroleum Producers<br />

Organization (APPO) for the creation <strong>of</strong> a multi-billion-dollar<br />

energy bank. Aimed at scaling up private sector investment<br />

in <strong>African</strong> oil and gas projects, the bank will provide critical<br />

financing for new and existing oil and gas projects, as well as<br />

energy developments across the entire value chain. Following<br />

international oil company divestment and the shift in global<br />

investment trends, the bank comes at a particularly critical time<br />

for Africa’s energy sector.<br />

The MoU was signed by Rene Awambeng, Director and Global<br />

Head, Client Relations, Afreximbank, and Dr Omar Farouk,<br />

Secretary General <strong>of</strong> APPO, in the presence <strong>of</strong> HE João Lourenço,<br />

President <strong>of</strong> the Republic <strong>of</strong> Angola, APPO ministers and <strong>African</strong><br />

Energy Chamber (AEC) Executive Chairman NJ Ayuk.<br />

While the developed world calls for the end <strong>of</strong> fossil fuels due<br />

to climate change, Africa continues to face the crisis <strong>of</strong> energy<br />

The demand-side <strong>of</strong> global energy places immense pressure<br />

on the mining sector, which is perceived to make a significant<br />

contribution to CO2 emissions. Now, mining companies with<br />

extensive social and environmental footprints are coming under<br />

greater scrutiny by investors, civil society and governments. In<br />

Africa, the ESG challenge is the legacy <strong>of</strong> environmental damage<br />

Outside <strong>of</strong> a limited number <strong>of</strong> countries, wind turbines have<br />

remained a rare sight in Africa. But this is not for lack <strong>of</strong> potential.<br />

In 2020, a study by the International Finance Corporation<br />

(IFC) found that continental Africa possesses an onshore wind<br />

potential <strong>of</strong> almost 180 000 TWh/annum, enough to satisfy<br />

the entire continent’s electricity needs 250 times over. As the<br />

continent continues to seek ways to expand energy access, the<br />

adoption <strong>of</strong> wind as a source <strong>of</strong> energy is expected to accelerate.<br />

To date, only Morocco, Egypt and South Africa have been<br />

truly successful in harnessing their wind potential and attracting<br />

private capital to set up wind parks. Through its widelyacclaimed<br />

Renewable Energy Independent Power Producer<br />

Procurement Programme (REIPPPP), South Africa has already<br />

commissioned 34 wind farms with an installed capacity <strong>of</strong> over<br />

3.3GW, according to the country’s IPP Office.<br />

And this is far from over. In 2021, the South <strong>African</strong> Ministry<br />

<strong>of</strong> Mineral Resources and Energy announced 25 successful<br />

parks or tea farms with ro<strong>of</strong>top or ground-mounted solar PV<br />

arrays, manufacturing plants with onsite gas power generation<br />

using a turbine or reciprocating engine running on piped gas,<br />

biogas or even associated petroleum gas (flare gas); or even onsite<br />

wind turbines powering mine sites or other commercial or<br />

industrial facilities. The list goes on.<br />

Is this something that is growing in the world?<br />

As with the overall demand for power, there is a growing demand<br />

for captive power globally. Depending on the circumstances,<br />

demand may be driven by environmental, social and governance<br />

poverty. Over 600-million people lack access to electricity and<br />

900-million lack access to clean cooking solutions. This situation<br />

has led stakeholders to call for the rapid expansion <strong>of</strong> the oil and<br />

gas sector, recognising the role these resources play in making<br />

energy poverty history. Despite these calls, global investors are<br />

shying away from hydrocarbons, leaving the continent without<br />

the investment it needs if it is to capitalise on its resources.<br />

According to the AEC’s Q1 2022 report, “The State <strong>of</strong> <strong>African</strong><br />

Energy”, from the peak in 2014 at $60-billion, capital expenditure<br />

in Africa declined to $22.5-billion in 2020. Despite projected<br />

increases to $30-billion, significant levels <strong>of</strong> investment are still<br />

required and for this to happen, the role <strong>of</strong> <strong>African</strong> financial<br />

institutions is vital.<br />

Catalyst for Africa-directed investment<br />

Organisations such as Afreximbank have already made notable<br />

progress to drive oil and gas project developments. At the end<br />

<strong>of</strong> 2020, Afreximbank’s total assets and guarantees stood at<br />

and irresponsible mining practices, therefore there is a need to<br />

create guidelines for the continent.<br />

In “Evolution in <strong>African</strong> Mining: Investing in the Energy<br />

Transition, ESG and the Economies”, FTI Consulting addresses<br />

the questions and possible responses on growth, costs, risks,<br />

capabilities and licences to operate that confront the mining<br />

sector in Africa and globally today.<br />

Based on research gathered through the FTI Consulting<br />

Resilience Barometer 2022, the mining sector seems to be under<br />

the most pressure from the current focus on ESG concerns. In fact,<br />

nearly half <strong>of</strong> the companies polled reported that they are under<br />

increased pressure, and one-third said that they are falling short<br />

on ESG reporting. As a result, while recognising international<br />

decarbonisation goals, mining and metals companies understand<br />

that their own ESG goals are now under ever-closer scrutiny.<br />

“The ESG shift does not mean discarding possible down-side<br />

risks. Instead, it is seen as having a business strategy that seeks<br />

new opportunities from the transition to sustainability that is<br />

underway, understanding that there will be disruptions and<br />

unknown risks to manage within this,” says Petrus Marais, Head<br />

<strong>of</strong> FTI Consulting South Africa practice.<br />

These factors will impact the sector across four major areas<br />

<strong>of</strong> concern.<br />

STAKEHOLDER ENGAGEMENT<br />

While one in five companies in the extractives sector stated<br />

they were under pressure to strengthen external stakeholder<br />

relationships, one in two chief risk <strong>of</strong>ficers felt “extreme<br />

pressure” to improve external stakeholder relationships. Greater<br />

bidders under its REIPPPP Bid Window 5, including 12 wind<br />

farms with a total capacity <strong>of</strong> 1 600MW.<br />

Bid Window 6, which was due to allocate a maximum<br />

capacity <strong>of</strong> 1 600MW <strong>of</strong> wind, with projects ranging from<br />

50MW to 240MW, was doubled in capacity by President<br />

Cyril Ramaphosa very soon after its initial announcement, in<br />

response to the problems the country has been having with<br />

rolling blackouts.<br />

Up north, Morocco and Egypt continue to drive wind-energy<br />

developments. The latter has an installed wind-generation<br />

capacity <strong>of</strong> almost 1.5GW across 13 wind farms, according to<br />

its Ministry <strong>of</strong> Energy. It now expects to commission another<br />

2GW by 2025 with an additional 14 wind farms.<br />

On the other side, Egypt has seen fewer but bigger projects.<br />

Its four wind farms have a current installed capacity <strong>of</strong> 1.6GW.<br />

The most recent one, West Bakr, was commissioned by Lekela<br />

Power in November 2021.<br />

$21.5-billion, with shareholder funds amounting<br />

to $3.4-billion. Other institutions, including<br />

the <strong>African</strong> Development Bank with an active<br />

portfolio <strong>of</strong> projects upwards <strong>of</strong> $12-billion, also<br />

represent critical providers across the <strong>African</strong><br />

energy landscape. However, more needs to be done,<br />

and if large-scale discoveries such as those made<br />

in Namibia and Ivory Coast are to be sufficiently<br />

developed, more capital needs to be made available.<br />

Stepping into this picture, the Afreximbank-<br />

APPO MoU aims to alleviate these challenges,<br />

ensuring the provision <strong>of</strong> capital for Africa’s<br />

upcoming oil and gas projects. Based in Africa,<br />

the bank will operate as an independent entity,<br />

regulated and led by experienced pr<strong>of</strong>essionals who<br />

know and understand Africa’s energy needs. The<br />

proposed bank will not be a substitute for private<br />

investment, however, but rather will serve as a<br />

catalyst for Africa-directed investment.<br />

NJ Ayuk, Executive Chairman <strong>of</strong> the AEC, says:<br />

“The <strong>African</strong> Energy Chamber has been pushing for<br />

the creation <strong>of</strong> an <strong>African</strong> Energy Bank, one that is<br />

<strong>African</strong>-based and Africa-focused, and I am proud<br />

to announce that the Afreximbank and APPO have<br />

taken the first steps towards its creation. The bank<br />

will be critical for Africa’s energy sector, serving as<br />

a catalyst – not a substitute – for private investment<br />

in <strong>African</strong> energy. This is a practical strategy for<br />

prosperity and a pragmatic vision that must be<br />

embraced by all who want to make energy poverty<br />

history and fight climate change.<br />

“Why should our pension funds go to European<br />

banks who say they will not finance <strong>African</strong>s and<br />

call us risky? We need to use that money to finance<br />

oil and gas,” states Ayuk.<br />

The proposed <strong>African</strong> Energy Bank will operate<br />

in the same way as the APPO-created Africa<br />

Energy Investment Corporation – a developmental<br />

financial institution created to channel resources<br />

towards the development <strong>of</strong> Africa’s energy sector.<br />

In addition to ensuring capital is made available for<br />

<strong>African</strong> oil and gas, the bank will serve as a vessel for<br />

mobilising <strong>African</strong>-sourced finance. Rather than<br />

utilising international banks for pension funds, the<br />

bank will serve as an investment corporation that<br />

will channel these funds into <strong>African</strong> projects. This<br />

will ensure high returns <strong>of</strong> investment as well as the<br />

development <strong>of</strong> Africa’s energy sector.<br />

The benefits will be two-fold: the funds will help<br />

drive oil and gas development while the oil and gas<br />

projects will drive socio-economic growth through<br />

the increase in access to energy. Accordingly, the<br />

role this bank will play is pivotal.<br />

collaboration with external stakeholders, including customers<br />

and the supply chain, will be essential in embedding the demands<br />

<strong>of</strong> a circular economy in the mining lifecycle to reduce its carbon<br />

footprint and ensure improved materials footprints.<br />

ESG<br />

The mining sector finds itself at a complex juncture requiring<br />

transition management strategies that acknowledge the<br />

increased demand for raw materials driven by the mineralintensive<br />

clean energy technology and a more aggressive stance<br />

on curbing their environmental impact. The global strategy<br />

along the decarbonisation and ESG compliance route is complex<br />

and multifaceted and it will alter the mining sector, while also<br />

providing opportunities and challenges.<br />

CIRCULAR ECONOMY<br />

The mining sector is aware <strong>of</strong> the complex environmental risks –<br />

primarily from mining waste – that accompany its operations, and<br />

the option <strong>of</strong> displacing those from one environment to another<br />

is no longer tenable. Implementing circular economy thinking,<br />

such as focusing “on getting more from less” and adhering to<br />

waste-reducing principles – reduce, reuse, recycle – will improve<br />

DEVELOPMENT AND MULTILATERAL FINANCE<br />

Across the rest <strong>of</strong> the continent, multilateral and development<br />

finance institutions (DFIs) have played a key role in supporting<br />

the emergence <strong>of</strong> the wind sector.<br />

West Africa has increasingly harnessed its wind potential<br />

with facilities commissioned in Cabo Verde (Cabeólica, 2011),<br />

Senegal (Taiba Ndiaye, 2019) and Mauritania (Boulenouar,<br />

2020). The projects received significant backing from the likes<br />

<strong>of</strong> the Africa Finance Corporation (AFC), the US International<br />

Development Finance Corporation (DFC) and the Arab Fund for<br />

Economic and Social Development (AFESD).<br />

They have successfully laid the ground for more projects to<br />

follow. In December 2021, the DFC notably provided funding for<br />

a feasibility study to expand Senegal’s 158.7MW Taiba Ndiaye<br />

Wind Farm by another 100MW.<br />

East Africa is also joining the game, led by Kenya. After<br />

the expansion <strong>of</strong> the Ngong facility in 2014, the country<br />

commissioned the 310MW Lake Turkana Wind Farm in 2017<br />

and the 100MW Kipeto Wind Farm in 2021. The <strong>African</strong><br />

Development Bank (AfDB) was the mandated lead arranger on<br />

Lake Turkana’s debt package and managed to attract several<br />

leading European DFIs to finance the project. The Kipeto project<br />

was mostly funded by the DFC.<br />

After its success in Cabo Verde, the AFC has moved east where<br />

it is the lead developer on Djibouti’s Red Sea Wind Power Project<br />

in Ghoubet. The 60MW facility is nearing completion and is the<br />

country’s very first independent power producer (IPP).<br />

AN IDEAL CHOICE TO CUT CARBON EMISSIONS<br />

More recently, natural resources and extractive industries<br />

have provided an additional driver <strong>of</strong> wind-energy adoption in<br />

Africa. Publicly-listed oil and gas and mining companies seeking<br />

to decarbonise their portfolio and cut carbon emissions across<br />

their operations are looking at wind projects.<br />

In March 2022, Savannah Energy executed an agreement with<br />

the Ministry <strong>of</strong> Petroleum, Energy and Renewable Energies <strong>of</strong><br />

(ESG) targets, by the high costs <strong>of</strong> implementing peak-utility<br />

tariffs, by intermittency or fluctuations on national grids, or<br />

even by the total absence <strong>of</strong> a grid in many areas <strong>of</strong> the world.<br />

Where captive power can be cleaner, cheaper and/or more<br />

reliable than grid supply, then there is motivation to assess the<br />

return on investment (ROI) by supplementing or substituting<br />

the grid with a captive-power source.<br />

The extractives industry, such as the mining <strong>of</strong> minerals or<br />

oil and gas, <strong>of</strong>ten operates in unconnected regions. Yet the<br />

industry requires stable power to avoid loss <strong>of</strong> production <strong>of</strong><br />

high-value materials which cover the related high operating<br />

and capital costs <strong>of</strong> such industries. In such cases, captive power<br />

is the only option.<br />

However, the question remains, how to secure reliable power<br />

and avoid intermittency while achieving maximum renewable<br />

penetration and remaining cost-effective? This is a question<br />

driving significant investment in the development <strong>of</strong> control<br />

systems and battery storage required to improve the trade<strong>of</strong>f<br />

between carbon reduction via renewable penetration and<br />

CREDIT: Emmaus Studio on Unsplash<br />

the sector’s sustainability and long-term pr<strong>of</strong>its. Such practices<br />

would go a long way towards satisfying stakeholder concerns<br />

around ESG compliance.<br />

SOCIETAL IMPACT OF MINING<br />

There is far more at stake in the mining sector than increasing<br />

exploration costs. The cost <strong>of</strong> ignoring the S in ESG can be massive.<br />

The complex ESG environment means businesses are under the<br />

scrutiny <strong>of</strong> social activists, shareholders, regulators, consumers<br />

and the media. Crucial to this success will be the management and<br />

monitoring <strong>of</strong> carbon and wider materials footprint by accurately<br />

quantifying, measuring and communicating the data collection.<br />

Research shows that 90% <strong>of</strong> the mining sector sees the need to<br />

align business strategy to social purposes. In addition, 90% also saw<br />

the transition to a more sustainable business model opening the<br />

doors to new opportunities. As Sara Powell, Managing Director,<br />

Sustainability and ESG at FTI Consulting United Kingdom, says,<br />

“Organisations – across every industry – that ignore the acceleration<br />

towards net-zero will not only be highly vulnerable to climate risks<br />

but will also be ill-prepared to capture far greater stakeholder value<br />

by acting on transition-led opportunities.”<br />

The full report can be seen at: www.fticonsulting.com<br />

the Republic <strong>of</strong> Niger to develop the country’s first wind farm.<br />

Savannah Energy, operator <strong>of</strong> some <strong>of</strong> the most prolific oil blocks<br />

in Niger, is planning to construct and operate the 250MW<br />

facility in the Tahoua Region. The wind farm will be structured<br />

as an IPP and is currently in feasibility study. It is expected to<br />

be sanctioned in 2023 for a potential commissioning in 2025.<br />

In Zambia, First Quantum Minerals (FQM) entered into a<br />

new partnership with Chariot and Total Eren in 2022 to develop<br />

430MW <strong>of</strong> solar and wind power for its mining operations. The<br />

company operates Africa’s biggest copper mine by production<br />

in Zambia and it seeks to reduce its carbon footprint by 30%<br />

by 2025.<br />

In South Africa, Anglo American is embarking on an even<br />

bigger project with EDF Renewables. Both companies signed<br />

a Memorandum <strong>of</strong> Understanding in March 2022 to work<br />

reliability. This is an endeavour that Aggreko has invested in<br />

significantly in recent years, since it acquired the battery-storage<br />

provider Younicos in 2017.<br />

In much <strong>of</strong> the developing world, grid stability and<br />

electrification are lagging behind the developed world.<br />

Here, value drivers for captive power are more pronounced.<br />

Higher costs and less reliable power encourage captive power<br />

installations in industries that are less power intensive and that<br />

face lower value production losses due to power outages whether<br />

they are connected to a national grid or not. In the developed<br />

world, policies such as net metering provide financial motivation<br />

for commercial and domestic entities to install captive power<br />

solutions as excess power is sold back to the grid via smart meters,<br />

thereby allowing revenue from curtailed power and improving<br />

the ROI <strong>of</strong> the initial investment.<br />

In other geographies, there are regulatory caps and barriers<br />

placed on captive power installations. This is especially true<br />

for grid-connected industrial entities, as state-owned utilities<br />

attempt to prevent loss <strong>of</strong> market to captive solutions. South<br />

Africa experienced the opposite <strong>of</strong> this in 2021 when President<br />

Cyril Ramaphosa announced that the regulatory cap on selfgeneration<br />

in South Africa would increase from 10MW to<br />

100MW, thereby paving the way for increased competition<br />

from captive power installations. This was done in response<br />

to an ageing centralised generation infrastructure dependent<br />

on coal power assets that are not to be overhauled, for obvious<br />

environmental reasons.<br />

And in other parts <strong>of</strong> Africa?<br />

Africa presents an interesting scenario. As mentioned, cost,<br />

instability and access metrics trail much <strong>of</strong> the world and<br />

act to encourage investment in captive power due to a higher<br />

comparative ROI. This is not only driven by large <strong>of</strong>f-grid<br />

extractive <strong>of</strong>f-takers in the mining and oil and gas industry, but<br />

a broader range <strong>of</strong> factors.<br />

The extractives industry has been a leader in the captive power<br />

space for decades due to its <strong>of</strong>ten-remote locations. Capital<br />

investment in transmission and distribution infrastructure to<br />

connect to a high-cost and unreliable grid supply <strong>of</strong>ten does not<br />

make sense from a returns perspective. This is especially true<br />

About FTI Consulting<br />

FTI Consulting, Inc. is a global business<br />

advisory firm dedicated to helping<br />

organisations manage change, mitigate<br />

risk and resolve disputes: financial, legal,<br />

operational, political and regulatory,<br />

reputational and transactional. With<br />

more than 6 900 employees located in 30<br />

countries, FTI Consulting pr<strong>of</strong>essionals<br />

work closely with clients to anticipate,<br />

illuminate and overcome complex<br />

business challenges and make the<br />

most <strong>of</strong> opportunities. The company<br />

generated $2.78-billion in revenues<br />

during fiscal year 2021. In certain<br />

jurisdictions, FTI Consulting’s services<br />

are provided through distinct legal<br />

entities that are separately capitalised<br />

and independently managed.<br />

For more information, visit www.<br />

fticonsulting.com and connect on Twitter<br />

(@FTIConsulting), Facebook and LinkedIn.<br />

Reporting in the mining sector<br />

is becoming ever-more complex.<br />

Credit: Thungela Resources<br />

Akhfenir Wind Farm is owned by<br />

Nareva, a subsidiary <strong>of</strong> Morocco’s<br />

National Investment Company.<br />

Credit: Eurogrues Maroc.<br />

West Bakr Wind Farm, Egypt.<br />

Credit: Lekela<br />

Max Schiff, Head <strong>of</strong> Sales,<br />

Southern East Africa, Aggreko<br />

CONTENTS<br />

MAURITIUS<br />

The financial services sector is vibrant and growing.<br />

COUNTRY PROFILE<br />

Contents<br />

The <strong>Journal</strong> <strong>of</strong><br />

<strong>African</strong> <strong>Business</strong><br />

2<br />

4<br />

6<br />

10<br />

14<br />

16<br />

19<br />

22<br />

24<br />

26<br />

28<br />

29<br />

30<br />

32<br />

FOREWORD<br />

From the editor’s desk.<br />

NEWS FROM THE CONTINENT<br />

Recent investments, expansions and milestones.<br />

THE CASE FOR CAPTIVE POWER IN AFRICA<br />

Aggreko’s Max Schiff outlines how various captive power options can mitigate<br />

disruptions and how the company is investing heavily in battery-storage solutions.<br />

AFRICAN MINING IN THE ESG ERA<br />

FTI Consulting has done a deep-dive into the challenges facing the <strong>African</strong> mining sector<br />

in the era <strong>of</strong> enhanced environmental, social and governance reporting (ESG).<br />

A NEW ENERGY BANK AIMS TO INCREASE PRIVATE INVESTMENT IN AFRICAN OIL AND GAS PROJECTS<br />

Afreximbank and the <strong>African</strong> Petroleum Producers Organization (APPO) have signed a<br />

memorandum <strong>of</strong> understanding (MoU) for the creation <strong>of</strong> a multi-billion-dollar energy bank.<br />

THE WINDS OF ENERGY CHANGE ARE BLOWING IN AFRICA<br />

An International Finance Corporation (IFC) study has found that Africa’s onshore wind potential<br />

is immense. Green Energy Africa Summit records how that potential is being realised.<br />

HOW SOUTH AFRICA CAN POWER GREEN INVESTMENTS AND END LOADSHEDDING<br />

With South Africa’s energy crisis showing no sign <strong>of</strong> slowing down, Wesgro CEO<br />

Wrenelle Stander comments on the urgent need to accelerate green investments.<br />

WHAT ARE THE INTELLECTUAL PROPERTY CONSIDERATIONS OF THE AFCFTA?<br />

Two experts examine the intellectual property implications <strong>of</strong> the AfCFTA agreement.<br />

AFRICAN BUSINESSES SHOULD DIVERSIFY SUPPLY CHAINS TO MITIGATE THE GLOBAL LOGISTICS CRUNCH<br />

Philip Myburgh comments on multiple factors which have caused turmoil in trade and logistics.<br />

“BEST PLACES IN AFRICA” WILL SHINE A SPOTLIGHT ON AFRICAN BRANDS<br />

A new initiative to promote <strong>African</strong> brands in tourism, investment and citizen mobilisation.<br />

VICTORIA FALLS HAS A NEW LUXURY HOTEL<br />

The Palm River Hotel has opened on the banks <strong>of</strong> the Zambezi River.<br />

AFRICAN EVENTS<br />

Upcoming business and trade events in South Africa.<br />

COUNTRY PROFILE: ANGOLA<br />

A major oil producer is trying to diversify its economy<br />

COUNTRY PROFILE: MAURITIUS<br />

The financial services sector is vibrant and growing<br />

M<br />

Photo: Pixabay<br />

3<br />

31<br />

Photo: Pixabay<br />

A NEW ENERGY BANK AIMS TO INCREASE PRIVATE<br />

INVESTMENT IN AFRICAN OIL AND GAS PROJECTS<br />

Afreximbank and the <strong>African</strong> Petroleum Producers Organization (APPO) have signed a<br />

P<br />

memorandum <strong>of</strong> understanding (MoU) for the creation <strong>of</strong> a multi-billion-dollar energy bank.<br />

Tackling energy poverty in Africa will be at the heart <strong>of</strong> the bank’s mission.<br />

AFRICAN MINING IN THE ESG ERA<br />

FTI Consulting has done a deep-dive into the challenges facing the <strong>African</strong> mining sector in the era <strong>of</strong> enhanced<br />

environmental, social and governance reporting (ESG). What follows is a summary <strong>of</strong> the main points <strong>of</strong> the<br />

14-page study, “Evolution in <strong>African</strong> Mining. Investing in the Energy transition, ESG, and the Economies”.<br />

THE WINDS OF ENERGY CHANGE<br />

ARE BLOWING IN AFRICA<br />

T<br />

As the continent<br />

18<br />

Diversification <strong>of</strong> the continent’s wind energy sector is expected in response to the rollout <strong>of</strong> new projects in new<br />

regions. An International Finance Corporation (IFC) study has found that Africa’s onshore wind potential is immense. The<br />

organisers <strong>of</strong> the annual Green Energy Africa Summit compiled this article to record how that potential is being realised.<br />

continues to seek<br />

ways to expand energy<br />

access, the adoption<br />

<strong>of</strong> wind as a source<br />

<strong>of</strong> energy is expected<br />

to accelerate.<br />

T<br />

THE CASE FOR CAPTIVE POWER IN AFRICA<br />

Industry and mining require a stable supply <strong>of</strong> power to operate optimally, a requirement which<br />

cannot always be guaranteed in Africa. Aggreko’s Max Schiff outlines how various captive power<br />

options can mitigate disruptions and how the company is investing heavily in battery-storage<br />

solutions to assist in creating hybrid solutions which combine grid and renewable sources.<br />

24 12<br />

18 12<br />

19 13<br />

8<br />

19<br />

ENERGY FINANCE<br />

The proposed <strong>African</strong> Energy Bank will operate in the same way<br />

as the APPO-created Africa Energy Investment Corporation<br />

– a developmental financial institution created to channel<br />

resources towards the development <strong>of</strong> Africa’s energy sector.<br />

25 13<br />

9<br />

ESG IN POWER<br />

MINING<br />

WIND POWER<br />

Publicly-listed oil and gas<br />

and mining companies<br />

seeking to decarbonise<br />

their portfolio and cut<br />

carbon emissions across<br />

their operations are<br />

looking at wind projects<br />

ENERGY<br />

How to secure reliable<br />

power and avoid<br />

intermittency while<br />

achieving maximum<br />

renewable penetration<br />

and remaining<br />

cost-effective?


NEWS FROM ALL AROUND AFRICA<br />

Recent investments, expansions and milestones.<br />

SHELL ACQUIRES WEST AFRICAN HYBRID-SOLAR-POWER PROVIDER<br />

Daystar Power, a West <strong>African</strong> provider <strong>of</strong> hybrid-solar-power solutions to commercial solutions for commercial and industrial businesses. Daystar Power’s co-founders and<br />

and industrial businesses, will become a wholly-owned subsidiary <strong>of</strong> Shell following its management team will continue to grow its operations in key West <strong>African</strong> markets, while<br />

acquisition by Shell and the approval <strong>of</strong> regulatory authorities. The acquisition will allow expanding the company’s presence to other countries across the continent.<br />

Daystar to grow its operations in the region, while expanding across the <strong>African</strong> continent. Daystar Power’s clients pay a flat monthly fee or a variable tariff (per kilowatt hour)<br />

The existing brand will operate within Shell’s Renewables & Energy Solutions business. for premium power services, which include a power audit and assessment <strong>of</strong> energy<br />

Sub-Saharan Africa has abundant potential as a solar market, which is expected to grow needs, a bespoke proposal, installation and full operation and maintenance. Clients do<br />

due to the chronic energy gap. Daystar Power, which numbers among its projects the fitting not incur any capital expenditure and do not pay up-front costs. By outsourcing the<br />

<strong>of</strong> a solar system to the Brazilian Embassy in Lagos (pictured), aims to increase its installed management <strong>of</strong> their power systems, Daystar Power clients can focus more on running<br />

solar capacity to 400MW by 2025 to become one <strong>of</strong> Africa’s leading providers <strong>of</strong> solar power their core businesses.<br />

HEAD START FOR AFRICAN AIRLINES AFTER PANDEMIC<br />

With no travel allowed during the worst months <strong>of</strong> the Covid-19 pandemic, some airlines<br />

switched to ferrying vital cargo. But most fleets were grounded. Rolls-Royce took the<br />

opportunity to complete an extensive maintenance programme on their AE3007 engines<br />

in the region, upgrading to the latest standards without charge. This allowed operators<br />

Credit: Airlink<br />

to comply with an Airworthiness Directive (necessary for all grounded aircraft) before<br />

operations restarted, giving them an all-important head start.<br />

Rolls-Royce has also signed an important extension <strong>of</strong> its TotalCare maintenanceservice<br />

agreement with South <strong>African</strong> airline, Airlink. The airline’s 28-aircraft<br />

Embraer ERJ fleet is powered by Rolls-Royce engines and the relationship has<br />

been going since 2001. Airlink’s on-time performance is consistently above 97%.<br />

TotalCare is predicated on maintenance schedules running at a fixed cost per engine<br />

flying hour. The service is underpinned by predictive maintenance which relies on<br />

extensive gathering and analysis <strong>of</strong> performance data, which helps engineers to<br />

diagnose potential future faults and act on them to avoid downtime.<br />

Rolls-Royce has stated that it intends to prove that all its aero engines will be able<br />

to run on 100% Sustainable Aviation Fuel by the end <strong>of</strong> 2023. Any sustainable fuel that<br />

meets the D1655 jet fuel standard and requirements is now approved for use in AE3007<br />

engines. Currently, seven different blend varieties can be used, some being certified<br />

to blend up to 50% with conventional jet fuel, dramatically reducing carbon footprints.<br />

4


NEWS<br />

LOW-EARTH ORBIT SATELLITES HOLD POTENTIAL FOR RURAL CONNECTIVITY<br />

World Mobile is expanding its network across<br />

the <strong>African</strong> continent following a series <strong>of</strong><br />

successful pilot tests using low-earth orbit<br />

(LEO) satellites in the US and UK. Positive<br />

results have been found in ongoing tests <strong>of</strong><br />

Starlink, one <strong>of</strong> the many LEO satellites.<br />

The company, which was founded in 2018,<br />

aims to provide affordable connectivity to<br />

rural and remote areas worldwide.<br />

The <strong>African</strong> continent currently sees less<br />

than a quarter the population having access<br />

to reliable Internet. Using innovative satellite<br />

and relay technology with stratospheric balloons, the first efforts <strong>of</strong> World Mobile are<br />

looking to provide connectivity in hard-to-reach areas within Tanzania, Kenya and Nigeria.<br />

World Mobile’s pilot tested the use <strong>of</strong> Starlink’s satellite network as a backhaul option for<br />

providing internet to World Mobile’s AirNodes (the network’s Internet access points). The<br />

connection delivered impressive broadband speeds, latency and stable connectivity with<br />

download speeds <strong>of</strong> up to 400Mbps.<br />

World Mobile’s dynamic network adapts its connectivity infrastructure to the needs <strong>of</strong><br />

each region, allowing it to deliver efficient and affordable connectivity where other mobile<br />

operators cannot reach.<br />

The pilot tests conducted by World Mobile and its partners demonstrated that remote<br />

connectivity with the LEO satellite, which serves as a constellation network connecting World<br />

Mobile’s AirNodes, can provide robust Wi-Fi services. In Zanzibar, World Mobile is targeting<br />

areas where there is minimal or no connectivity. It is underway in deploying its hybridmesh<br />

network to deliver affordable mobile connectivity in the region through a network<br />

<strong>of</strong> AirNodes and aerostats with a coverage radius <strong>of</strong> up to 70km. In addition to rolling out in<br />

Tanzania and Kenya, World Mobile is in advanced talks about expanding its network to other<br />

<strong>African</strong> countries, such as Mozambique and Nigeria. The company’s unique <strong>of</strong>fering provides<br />

low-cost connectivity in areas that traditional operators cannot reach, while also enabling<br />

entrepreneurs to own or operate a portion <strong>of</strong> the network and benefit from its adoption.<br />

Orange Botswana became the first Orange affiliate in Africa to<br />

launch 5G commercially and the country’s first Orange Digital<br />

Center made it the company’s 12th such training centre in<br />

Africa and the Middle East<br />

The Digital Centers are designed to train young people in<br />

digital technology and enhance their employability. Previous<br />

countries to host a Digital Center are Tunisia, Senegal,<br />

Ethiopia, Mali, Ivory Coast, Cameroon, Egypt, Jordan,<br />

Madagascar, Morocco and Liberia.<br />

Spread over 390 square metres, it brings together several<br />

strategic programmes <strong>of</strong> the Orange group, namely, a coding<br />

school, a solidarity FabLab (one <strong>of</strong> the Orange Foundation’s<br />

digital manufacturing workshops) and an Orange Fab start-up<br />

accelerator, supported by Orange Ventures Middle East and<br />

Africa, the investment fund <strong>of</strong> Orange Group.<br />

All the programmes are provided free-<strong>of</strong> charge and are<br />

ORANGE BOTSWANA BLOSSOMED IN 2022 WITH TWO BIG LAUNCHES<br />

open to everyone. They range from digital training for young<br />

people, 90% <strong>of</strong> which are practical, guidance for project<br />

bearers, start-up acceleration and investment in these.<br />

Working as a network, the Orange Digital Centers allow<br />

experiences and expertise to be shared between countries<br />

and <strong>of</strong>fer a simple and inclusive approach to improve<br />

enabled in the country by the 5G technology. The 5G launch<br />

is aligned with the government’s ambition to leverage Fourth<br />

Industrial Revolution (4IR) innovation towards transforming<br />

Botswana into a knowledge-based economy.<br />

5G, with its ultra-high speed and low latency, will support<br />

new disruptive services such as e-health, connected vehicles,<br />

young people’s employability, encourage innovative connected cities, real-time gaming, smart homes and learning<br />

entrepreneurship and promote the local digital ecosystem. through VR and augmented reality. It <strong>of</strong>fers a new world <strong>of</strong><br />

In addition, Orange Botswana, in partnership with<br />

possibilities to companies, innovators and society at large.<br />

Orange Botswana has partnered with MRI Botswana to<br />

create a “Connected Ambulance” project that will allow<br />

doctors to guide paramedics through life-saving procedures<br />

on their way to hospitals. This telemedicine intervention will<br />

change lives and would not have been possible without 5G.<br />

After this first commercial launch <strong>of</strong> its 5G services<br />

in Botswana, Orange Middle East and Africa intends to<br />

maintain its efforts in getting the latest and most advanced<br />

technologies in all its MEA countries, adding value to local<br />

economies and bridging the digital gap.<br />

Orange is present in a total <strong>of</strong> 18 countries in Africa<br />

universities, will train students for free and roll out Orange<br />

Digital Center Clubs, extensions <strong>of</strong> the Orange Digital Center<br />

and the Middle East and has 142-million customers as <strong>of</strong><br />

30 September 2022.<br />

within some universities in the regions. This will complement<br />

the education system to give as many people as possible<br />

access to new technologies and support them in using these<br />

technologies to their full extent.<br />

The 5G network became available in greater Gaborone and<br />

Francistown, covering 30% <strong>of</strong> the population in November<br />

2022. Other cities will follow in early 2023.<br />

New healthcare, education and security services will be<br />

5


THE CASE FOR CAPTIVE POWER IN AFRICA<br />

Industry and mining require a stable supply <strong>of</strong> power to operate optimally, a requirement which<br />

cannot always be guaranteed in Africa. Aggreko’s Max Schiff outlines how various captive power<br />

options can mitigate disruptions and how the company is investing heavily in battery-storage<br />

solutions to assist in creating hybrid solutions which combine grid and renewable sources.<br />

Please define “captive power”.<br />

There are numerous definitions and types <strong>of</strong> captive power. Most<br />

commonly, it is defined as “behind the meter” energy or power<br />

that is generated at the user site, rather than imported from a<br />

wider grid transmission system via an energy meter.<br />

The scale, sources and applications <strong>of</strong> captive power differ<br />

significantly. While it could be at the household level, here we<br />

are talking about industrial and commercial applications. This<br />

may include processing plants with the onsite generation, such<br />

as sugar factories using thermal power from burning bagasse to<br />

generate steam to drive a turbine; industrial parks or farms with<br />

ro<strong>of</strong>top or ground-mounted solar PV arrays; manufacturing<br />

plants with onsite gas power generation such as turbines or<br />

reciprocating engines running on piped gas, biogas or even<br />

associated petroleum gas (flare gas); or onsite wind turbines<br />

powering mine sites or other commercial/industrial facilities.<br />

The list goes on.<br />

Is this something that is growing in the world?<br />

As with the overall power demand, there is a growing demand<br />

for captive power globally. Depending on the circumstances,<br />

demand may be driven by environmental and social governance<br />

Remote mining destinations such as this one in the Democratic Republic <strong>of</strong> the<br />

Congo must use captive power to support their operations. Credit: Aggreko<br />

6


ENERGY<br />

(ESG) targets, high-cost peak utility tariffs, intermittency or<br />

fluctuations <strong>of</strong> grid supplies, or even a total absence <strong>of</strong> a grid in<br />

many areas <strong>of</strong> the world.<br />

Where captive power can be cleaner, cheaper and/or more<br />

reliable than grid supply, then there is motivation to assess the<br />

return on investment (ROI) <strong>of</strong> supplementing or substituting the<br />

grid with a captive-power source.<br />

The extractives industry, such as the mining <strong>of</strong> minerals or<br />

oil and gas, <strong>of</strong>ten takes place in unconnected regions. It also<br />

requires stable power to maintain production <strong>of</strong> high-value<br />

materials to cover the high operating and capital costs <strong>of</strong> such<br />

industries. In such cases, captive power is the only option.<br />

However, today’s question is primarily how to secure reliable<br />

power and avoid intermittency while achieving maximum<br />

renewable penetration and remaining cost-effective? This is a<br />

question driving significant investment in control system and<br />

battery storage development required to improve the trade-<strong>of</strong>f<br />

between carbon reduction via renewable penetration and the<br />

reliability <strong>of</strong> thermal power. This is an endeavour that Aggreko<br />

has invested in significantly in the past six years, particularly<br />

since it acquired the battery storage provider Younicos in 2017.<br />

In much <strong>of</strong> the developing world grid stability and<br />

electrification lag behind the developed world. Here, the value<br />

drivers for captive power are more pronounced. Higher cost<br />

and less reliable power increase the ROI <strong>of</strong> captive power,<br />

even for industries that are less power intensive and produce<br />

lower-value goods and materials. In the developed world, net<br />

metering policies provide financial motivation for commercial<br />

and domestic entities to install captive power solutions as<br />

excess power is sold back to the grid via smart meters, allowing<br />

revenue from curtailed power, hence improving the ROI <strong>of</strong> the<br />

initial investment.<br />

In other geographies, there are regulatory caps and barriers<br />

placed on captive power installations, especially for gridconnected<br />

industrial entities, as state-owned utilities attempt<br />

to prevent loss <strong>of</strong> market to captive solutions. South Africa<br />

experienced the opposite <strong>of</strong> this in 2021 when President<br />

Cyril Ramaphosa announced that the regulatory cap on selfgeneration<br />

in South Africa would increase from 10MW to<br />

100MW, paving the way for increased competitors for the<br />

national grid from captive power installations. This was done<br />

in response to an ageing centralised generation infrastructure<br />

dependent on coal power assets that are not to be overhauled,<br />

for obvious environmental reasons.<br />

And in other parts <strong>of</strong> Africa?<br />

Africa presents an interesting scenario. As mentioned above,<br />

cost, instability and access metrics trail much <strong>of</strong> the world,<br />

thus encouraging investment in captive power due to a higher<br />

comparative ROI. This is not only driven by large <strong>of</strong>f-grid<br />

extractive <strong>of</strong>f-takers in the mining and oil and gas industry, but<br />

a broader range <strong>of</strong> actors.<br />

The extractives industry has been a leader in the captive power<br />

space for decades due to its <strong>of</strong>ten-remote locations. Capital<br />

investment in transmission and distribution infrastructure to<br />

connect to a high-cost and unreliable grid supply <strong>of</strong>ten does not<br />

make sense. This is especially true when critical applications<br />

are considered, such as underground mining where power<br />

outages not only present significant health and safety risks, but<br />

7<br />

How to secure reliable<br />

power and avoid<br />

intermittency while<br />

achieving maximum<br />

renewable penetration<br />

and remaining<br />

cost-effective?<br />

Max Schiff, Head <strong>of</strong> Sales,<br />

Southern East Africa, Aggreko


The extractives<br />

industry has been<br />

a leader in the<br />

captive power space<br />

for decades<br />

Battery storage systems are a vital<br />

component <strong>of</strong> any captive power<br />

solution, enabling hybridisation with<br />

grid or renewable sources. Getting<br />

batteries up to the scale where they<br />

can support large-scale industrial<br />

operations is the next technological<br />

challenge. Credit: Aggreko<br />

the risk <strong>of</strong> production losses, especially if mine shafts are prone<br />

to flooding. In many locations, such as Tanzania and Zambia,<br />

where the national grids have extended successfully in recent<br />

years, mines still require onsite generation as a backup for these<br />

critical applications. In the case <strong>of</strong> oil and gas, where production<br />

values are high, and producers are held accountable for<br />

production targets by their shareholders and, <strong>of</strong>ten, regulators,<br />

captive power is necessary to ensure reliability. Even highercost<br />

diesel applications are preferable to losses resulting from<br />

grid instability causing failure or damage to equipment used<br />

for artificial lift. We see extensive examples <strong>of</strong> this in Egypt’s<br />

Western Desert, where government mandates are now driving<br />

producers to move away from diesel by using flared gas to power<br />

site operations, resulting in significant carbon <strong>of</strong>f-sets without<br />

risking production.<br />

Equally, across the <strong>African</strong> continent, we see an increase in<br />

the application <strong>of</strong> captive power technologies on agricultural and<br />

commercial sites, where solar is proliferating as evidenced by the<br />

growth <strong>of</strong> solar power providers <strong>of</strong>fering industrial-scale solar<br />

PPAs. In many <strong>of</strong> them, PV is integrated with other local sources<br />

<strong>of</strong> power such as hydro or wind. In such cases, <strong>of</strong>f-takers can<br />

benefit from gains in all drivers, environmental, reliability and<br />

cost, while reducing capital investments through executing PPAs<br />

with companies <strong>of</strong>fering financed solutions. Kenya’s tea industry<br />

is a great example <strong>of</strong> this, despite the country’s competitive grid<br />

tariffs and high penetration <strong>of</strong> renewables in its national supply.<br />

As South <strong>African</strong> utility Eskom continues to implement<br />

the reliability maintenance recovery programme to achieve<br />

operational sustainability, many electricity generating units<br />

are taken <strong>of</strong>fline for planned maintenance which leaves the<br />

national power system constrained. The Embedded Generation<br />

Investment Programme (EGIP) is critical for South Africa to<br />

achieve its climate targets and reduce excess demand on Eskom.<br />

What are the reasons for the increased interest in<br />

captive power?<br />

There are several advantages. In the most basic example,<br />

captive solutions deliver power where the grid does not exist.<br />

8<br />

In grid-connected scenarios, captive solutions allow for<br />

the reduction <strong>of</strong> the cost <strong>of</strong> power, both economically and<br />

environmentally. Finally, reliability gains can have a significant<br />

knock-on effect on production, or assist in avoiding production<br />

losses, by overcoming intermittency and instability. Where<br />

grid voltage and frequency stability are a challenge, the same is<br />

true, and <strong>of</strong>f-takers can also avoid damage to costly machinery.<br />

This last point is especially true <strong>of</strong> sensitive processes such as<br />

smelting, clinker production and high-value mineral extraction<br />

and processing, where equipment values and operational costs<br />

are high, and downtime is therefore very costly.<br />

The ESG agenda is, <strong>of</strong> course, driving the captive power<br />

industry as corporates, financiers, regulators, households and<br />

individuals look for avenues to not only reduce their energy bills<br />

but also their environmental footprint. Household-level solar<br />

and battery walls that allow their stored energy to be returned to<br />

the grid if unused are a great example <strong>of</strong> this. We see growth in<br />

these applications in the US, albeit not at a significant scale yet.<br />

Finally, in areas facing challenges <strong>of</strong> energy access, capital<br />

investment in large-scale transmission systems to connect<br />

remote areas presents a hurdle that more local captive power<br />

solutions can overcome. Mini-grids and captive solutions avoid<br />

large-scale transmission investment and the associated losses<br />

while ensuring that locally available resources, such as solar,<br />

wind, tidal, biogas, etc, can be used to meet local demand.<br />

Is the regulatory (or legislative) environment ready for<br />

captive power in Africa?<br />

Regulation in Africa varies from one jurisdiction to another.<br />

In Uganda, distributed energy is regulated as part <strong>of</strong> a broader<br />

isolated-grid system approach administered by the government.<br />

Nigeria’s focused captive power regulation <strong>of</strong>fers clarity to<br />

consumers, operators and developers. In Kenya captive power<br />

systems are regulated through a number <strong>of</strong> separate regulations,<br />

arguably making a more complex environment for these actors.<br />

South Africa has begun an intense programme <strong>of</strong> creating<br />

Special Economic Zones: is this something you are seeing in<br />

other <strong>African</strong> countries, and why is captive power<br />

so particularly suitable for such areas?<br />

According to the United Nations Conference on<br />

Trade and Development (UNCTAD) 2021 report,<br />

there are over 200 Special Economic Zones (SEZs) in<br />

Africa. Around 60 new SEZs are under construction,<br />

and others are being developed or planned. The<br />

report highlights Kenya, Nigeria, Ethiopia and Egypt<br />

as the locations with the highest number <strong>of</strong> SEZs.<br />

Morocco, Mauritius, South Africa, Zanzibar and<br />

Rwanda are all looking to further leverage SEZs to<br />

attain economic development.<br />

Captive power <strong>of</strong>fers power autonomy and<br />

reliability to SEZs that may not be available from<br />

the existing utility infrastructure. For SEZs are<br />

also designed to create job opportunities in remote<br />

locations, captive power remains the only viable<br />

source <strong>of</strong> electricity.


ENERGY<br />

Would mining be another sector that lends itself to captive power?<br />

The key factor affecting the operation <strong>of</strong> mines in South Africa<br />

is the availability <strong>of</strong> a reliable, uninterrupted supply <strong>of</strong> power.<br />

South Africa’s well-publicised energy challenges mean that<br />

mines are not guaranteed to receive a reliable supply from the<br />

national power utility. In the recent months, loadshedding<br />

has reached a point where mining processes can no longer<br />

be organised to mitigate production losses due to power<br />

intermittency. Indeed, the current narrative is one that is<br />

characterised by such losses and pose a major challenge for<br />

the wider industry. Captive power options, particularly those<br />

with cost-effective hybrid elements, present for mines a great<br />

opportunity, especially mines with longer life spans.<br />

What are the cost implications <strong>of</strong> captive power?<br />

The real question is what value can captive power solutions<br />

<strong>of</strong>fer to businesses? This is to ask not only what the implications<br />

are for operating costs, but what benefits will be derived from<br />

a more reliable or a cleaner energy source? Where production<br />

and environmental gains outweigh operating costs, we can<br />

determine the value that underpins a return on investment. The<br />

parameters <strong>of</strong> this ROI vary significantly depending on the cost<br />

and quality <strong>of</strong> the existing supply, the fuel/energy available to be<br />

used to generate power onsite (be these from fossil or renewable<br />

sources), the cost <strong>of</strong> capital available to the investor and the<br />

duration <strong>of</strong> the power requirement, not to mention the value <strong>of</strong><br />

the service, material or goods being produced.<br />

What sort <strong>of</strong> solutions does Aggreko have within this market?<br />

Aggreko’s capabilities speak directly to the captive power space,<br />

particularly for larger industries.<br />

The energy transition is a global mandate for governments,<br />

companies and individuals alike. While the end goal is net<br />

zero, the process must be economically viable for stakeholders,<br />

including <strong>of</strong>f-takers, investors and developers, for the<br />

transmission to progress and be successful.<br />

Within this context, the key question <strong>of</strong> captive power<br />

is, “How to maximise reliability while minimising cost and<br />

environmental impacts?” For now, the trade-<strong>of</strong>f between these<br />

drivers remains a challenge. It will continue to do so until battery<br />

technologies can cost-effectively and seamlessly match large and<br />

complex loads to renewable power sources such that the agility<br />

and reliability <strong>of</strong> fossil-based thermal solutions are no longer<br />

required to perform this function.<br />

At present, it’s not possible to run a factory, mine, oil and gas<br />

site on intermittent class one renewable, such as wind and solar,<br />

without significantly curtailing production, in most cases to the<br />

point <strong>of</strong> the facility being economically unviable. Battery storage<br />

technologies are <strong>of</strong>ten not yet cost-effective enough to overcome<br />

this intermittency at such a scale. Historically, thermal power<br />

solutions, including diesel, gas and HFO, have been used due<br />

to two simple reasons: they are technically capable <strong>of</strong> powering<br />

complex industrial loads 24 hours a day, seven days a week, and<br />

fuels are widely available and easily transportable, especially in<br />

the case <strong>of</strong> diesel and increasingly gas. This is to say that the<br />

supply chains for the required technology and fuel are well<br />

developed and reliable.<br />

Aggreko’s role in the transition is aligned with that <strong>of</strong> the<br />

<strong>of</strong>f-takers in this regard. We recognise that fossil-based thermal<br />

power is necessary to ensure the economic and technical viability<br />

<strong>of</strong> captive solutions for many industries. This said, thermal<br />

generation must be as efficient as possible through investment in<br />

low-emission fuels and engines and application <strong>of</strong> load-sharing<br />

techniques that ensure efficient loading.<br />

Beyond this, Aggreko continues to invest in battery storage<br />

solutions that sit alongside our gas, diesel and HFO <strong>of</strong>ferings<br />

to enable hybridisation with grid or renewable sources. Our<br />

in-house control systems enable us to prioritise energy sources<br />

based on financial or environmental drivers specified by<br />

our customers and to match these to the relevant loads, ensuring<br />

continuity at the site. If the sun is shining or the wind is<br />

blowing, on-site renewable energy sources integrated by Aggreko<br />

can be employed and matched to the site loads. If the energy<br />

source drops, then stored energy can be deployed until a grid<br />

supply or onsite thermal generation is dispatched as a last resort.<br />

We see this as the essence <strong>of</strong> the transition as we continue our<br />

efforts and strive for greater and greater renewable energy<br />

penetration wherever possible. Aggreko will continue to invest<br />

in thermal, storage and controls solutions to enable this while<br />

working with renewable technology providers to ensure we <strong>of</strong>fer<br />

customers the greatest inflexion point between reliability and<br />

environmental protection.<br />

9<br />

Africa has more than 200 Special<br />

Economic Zones (SEZs), such<br />

as the Saldanha Bay Industrial<br />

Development Zone in South Africa’s<br />

Western Cape Province. Captive<br />

power can provide such important<br />

industrial and commercial<br />

areas with power autonomy<br />

and reliability. Credit: SBIDZ<br />

Mini-grids not only<br />

avoid large-scale<br />

transmission<br />

investment but<br />

also avoid the<br />

associated losses


AFRICAN MINING IN THE ESG ERA<br />

FTI Consulting has done a deep-dive into the challenges facing the <strong>African</strong> mining sector in the era <strong>of</strong> enhanced<br />

environmental, social and governance reporting (ESG). What follows is a summary <strong>of</strong> the main points <strong>of</strong> the<br />

14-page study, “Evolution in <strong>African</strong> Mining. Investing in the Energy transition, ESG, and the Economies”.<br />

Credit: Pixabay<br />

Sara Powell, Managing Director,<br />

Sustainability and ESG at FTI<br />

Consulting United Kingdom<br />

TThe demand side <strong>of</strong> global energy places immense pressure on<br />

the mining sector, which is perceived to make a significant<br />

contribution to CO2 emissions. Now, mining companies with<br />

extensive social and environmental footprints are coming under<br />

greater scrutiny by investors, civil society and governments. In<br />

Africa, the ESG challenge is the legacy <strong>of</strong> environmental damage<br />

and irresponsible mining practices, therefore there is a need to<br />

create guidelines for the continent.<br />

In “Evolution in <strong>African</strong> Mining: Investing in the Energy<br />

Transition, ESG and the Economies”, FTI Consulting addresses<br />

the questions and possible responses on growth, costs, risks,<br />

capabilities and licences to operate that confront the mining sector<br />

in Africa and globally today.<br />

Based on research gathered through the FTI Consulting<br />

Resilience Barometer 2022, the mining sector seems to be under<br />

the most pressure from the current focus on ESG concerns. In fact,<br />

nearly half <strong>of</strong> the companies polled reported that they are under<br />

increased pressure, and one-third said that they are falling short<br />

on ESG reporting. As a result, while recognising international<br />

decarbonisation goals, mining and metals companies understand<br />

that their own ESG goals are now under ever-closer scrutiny.<br />

“The ESG shift does not mean discarding possible down-side<br />

risks. Instead, it is seen as having a business strategy that seeks new<br />

opportunities from the transition to sustainability that is underway,<br />

understanding that there will be disruptions and unknown risks to<br />

manage within this,” says Petrus Marais, Head <strong>of</strong> FTI Consulting<br />

South Africa practice.<br />

These factors will impact the sector across four major areas<br />

<strong>of</strong> concern.<br />

STAKEHOLDER ENGAGEMENT<br />

While one in five companies in the extractives sector stated<br />

they were under pressure to strengthen external stakeholder<br />

relationships, one in two chief risk <strong>of</strong>ficers felt “extreme<br />

pressure” to improve external stakeholder relationships. Greater<br />

10


ESG IN MINING<br />

collaboration with external stakeholders, including customers<br />

and the supply chain, will be essential in embedding the demands<br />

<strong>of</strong> a circular economy in the mining lifecycle to reduce its carbon<br />

footprint and ensure improved materials footprints..<br />

ESG<br />

The mining sector finds itself at a complex juncture requiring<br />

transition management strategies that acknowledge the<br />

increased demand for raw materials driven by the mineralintensive<br />

clean energy technology and a more aggressive stance<br />

on curbing their environmental impact. The global strategy<br />

along the decarbonisation and ESG compliance route is complex<br />

and multifaceted and it will alter the mining sector, while also<br />

providing opportunities and challenges.<br />

CIRCULAR ECONOMY<br />

The mining sector is aware <strong>of</strong> the complex environmental risks –<br />

primarily from mining waste – that accompany its operations, and<br />

the option <strong>of</strong> displacing those from one environment to another<br />

is no longer tenable. Implementing circular economy thinking,<br />

such as focusing “on getting more from less” and adhering to<br />

waste-reducing principles – reduce, reuse, recycle – will improve<br />

the sector’s sustainability and long-term pr<strong>of</strong>its. Such practices<br />

would go a long way towards satisfying stakeholder concerns<br />

around ESG compliance.<br />

SOCIETAL IMPACT OF MINING<br />

There is far more at stake in the mining sector than increasing<br />

exploration costs. The cost <strong>of</strong> ignoring the S in ESG can be massive.<br />

The complex ESG environment means businesses are under the<br />

scrutiny <strong>of</strong> social activists, shareholders, regulators, consumers<br />

and the media. Crucial to this success will be the management and<br />

monitoring <strong>of</strong> carbon and wider materials footprint by accurately<br />

quantifying, measuring and communicating the data collection.<br />

Research shows that 90% <strong>of</strong> the mining sector sees the need to<br />

align business strategy to social purposes. In addition, 90% also saw<br />

the transition to a more sustainable business model opening the<br />

doors to new opportunities. As Sara Powell, Managing Director,<br />

Sustainability and ESG at FTI Consulting United Kingdom, says,<br />

“Organisations – across every industry – that ignore the acceleration<br />

towards net-zero will not only be highly vulnerable to climate risks<br />

but will also be ill-prepared to capture far greater stakeholder value<br />

by acting on transition-led opportunities.”<br />

The full report can be seen at: www.fticonsulting.com<br />

About FTI Consulting<br />

FTI Consulting, Inc. is a global business<br />

advisory firm dedicated to helping<br />

organisations manage change, mitigate<br />

risk and resolve disputes: financial, legal,<br />

operational, political and regulatory,<br />

reputational and transactional. With<br />

more than 6 900 employees located in 30<br />

countries, FTI Consulting pr<strong>of</strong>essionals<br />

work closely with clients to anticipate,<br />

illuminate and overcome complex<br />

business challenges and make the<br />

most <strong>of</strong> opportunities. The company<br />

generated $2.78-billion in revenues<br />

during fiscal year 2021. In certain<br />

jurisdictions, FTI Consulting’s services<br />

are provided through distinct legal<br />

entities that are separately capitalised<br />

and independently managed.<br />

For more information, visit<br />

www.fticonsulting.com and connect<br />

on Twitter (@FTIConsulting),<br />

Facebook and LinkedIn.<br />

Reporting in the mining sector<br />

is becoming ever-more complex.<br />

Credit: Thungela Resources<br />

11


FUTURE FIT – 2023 YOUR YEAR TO STAND OUT!<br />

Reshape your future with Wits <strong>Business</strong> School to remain relevant in the rapidly-changing business environment.<br />

By Leoni Grobler, Director <strong>of</strong> Executive Education at Wits <strong>Business</strong> School.<br />

Digitisation and digitalisation have transformed our world <strong>of</strong> work and put many<br />

<strong>of</strong> us in challenging positions. Many are questioning: am I still relevant for this<br />

position? Is this role even going to be around much longer? At Wits <strong>Business</strong> School<br />

(WBS), we believe that there is no need to fear.<br />

Not only do we aim to remain relevant but, as a leading research institution,<br />

we develop highly credible and relevant courses and programmes that enhance<br />

the relevance <strong>of</strong> our delegates in their job roles and assist them in leadership roles.<br />

People are the new competitive edge in business. Products or services can be<br />

duplicated and emulated by competitors but nobody can copy and paste the rich,<br />

intangible assets <strong>of</strong> talented employees who perform in an exemplary manner.<br />

Future leaders must be agile in order to respond quickly to new problems and to<br />

imagine and pursue new solutions.<br />

Executive Education is a division <strong>of</strong> WBS that designs and delivers educational<br />

interventions to business pr<strong>of</strong>essionals as part <strong>of</strong> their continued pr<strong>of</strong>essional<br />

development and life-long learning. Frequently, the courses are tailored to<br />

particular cohorts or organisations, ensuring that the courses meet the needs <strong>of</strong><br />

the specific industry or organisation.<br />

The Executive Education short course <strong>of</strong>ferings include globally-recognised<br />

transformative learning methodologies, networking and skills-sharing<br />

opportunities, Action Learning Projects, expert coaching and workplace<br />

application. Our team <strong>of</strong> pracademics bring to the classroom first-hand and up-todate<br />

industry experience in order to maximise productivity, drive innovation and<br />

sustainability, and to develop a competitive advantage.<br />

12<br />

Executive Education’s aim is to develop leaders who can fashion the future <strong>of</strong><br />

the <strong>African</strong> continent and raise the values-bar on how business is done on the<br />

continent. Learning is therefore relevant to the challenges and opportunities what<br />

we face, providing our delegates with a deep understanding <strong>of</strong> the complexities <strong>of</strong><br />

doing business in Africa within a global context.<br />

The vision <strong>of</strong> WBS is to be a leading <strong>African</strong> <strong>Business</strong> School firmly<br />

embedded amongst the best business schools internationally. Through quality<br />

and impactful programmes. WBS aims to become a leading <strong>African</strong> <strong>Business</strong><br />

School by <strong>of</strong>fering life-long access to Africa’s premier, globally-connected<br />

ecosystem in digital technology and innovation.<br />

WBS stands at an exciting juncture: the world has undergone a seismic shift<br />

brought about by the Covid-19 pandemic; technology has connected us as never<br />

before. Moreover, climate change has forced us to rethink how we do business.<br />

Operating from the heart <strong>of</strong> Africa’s financial and economic hub,<br />

Johannesburg, and as a leader in research in areas critical to sustainable growth,<br />

WBS has a powerful role to play in equipping young leaders with the skills<br />

they need to build the future they want.<br />

WBS is preparing the business leaders <strong>of</strong> tomorrow to manage the continent’s<br />

economic transformation effectively. These leaders will facilitate the goal <strong>of</strong> our<br />

constitution for an inclusive developmental future for all <strong>of</strong> our people. This is<br />

the next leg on our journey as we consolidate our position as a leading <strong>African</strong><br />

business school.<br />

Make flexible<br />

learning a priority


EDUCATION<br />

FLEXIBLE LEARNING IS CRITICAL IN PROFESSIONAL DEVELOPMENT<br />

Due to the dynamic nature <strong>of</strong> a rapidly-changing business environment, WBS<br />

is positioned to adapt to new ways <strong>of</strong> work. The need to develop employees to<br />

adapt to this new way <strong>of</strong> work is becoming critical. It is time for individuals<br />

and companies to focus on honing, developing and upskilling their skillsets and<br />

knowledge bases.<br />

The latest trend is to evolve dynamically through flexibility: flexible working<br />

hours, flexible places <strong>of</strong> work and flexible methods <strong>of</strong> working. Now there<br />

is flexible learning, a crucial element for pr<strong>of</strong>essionals at all levels. This has<br />

prompted tertiary institutions to expand their <strong>of</strong>ferings through affordable and<br />

accredited partners.<br />

Flexible learning is more than just transferring a course to a digital platform.<br />

Flexible learning is flexible practices <strong>of</strong> formal education, increasing flexibility<br />

across the scope <strong>of</strong> requirements, payment options, time and location <strong>of</strong> study,<br />

assessments and certifications. Flexible learning can be delivered through<br />

blended (hybrid) or online modes.<br />

Whether one opts for an online short course or attends a three-day workshop<br />

arranged by one’s employer, the participation skills learned in such pr<strong>of</strong>essional<br />

development options tend to be versatile and transferable.<br />

Thus, flexible learning is the ideal solution for employers<br />

looking to upskill staff as well as for individuals seeking a<br />

career change or improvement in their pr<strong>of</strong>essional skills for<br />

their current field <strong>of</strong> work.<br />

For pr<strong>of</strong>essionals and employees, flexible learning is<br />

definitely the way to go. With short course and microcredentials<br />

on <strong>of</strong>fer, you can advance your career through<br />

further study, without having to give up the work that pays<br />

for these studies. Career advancement through additional<br />

qualifications is a feasible and affordable option.<br />

Flexible learning also <strong>of</strong>fers various perks and benefits<br />

to both employers and individuals, some <strong>of</strong> which are<br />

listed below:<br />

• allows learners to learn where and when it suits them<br />

• accommodates learners’ learning styles and preferences<br />

more effectively<br />

• <strong>of</strong>fers a more comfortable learning environment than a<br />

traditional classroom<br />

• <strong>of</strong>fers increased convenience and flexibility for learners<br />

• is economically viable, with lower total costs<br />

• provides training options that can accommodate business<br />

demands and needs for employers<br />

• increases employee (and student) retention and<br />

attendance<br />

• develops learners’ independence and confidence while<br />

improving achievement<br />

• provides employees an opportunity to gain new<br />

knowledge and develop new skills.<br />

Whether you’re an individual or an employee looking to explore flexible<br />

learning options, WBS is guaranteed to have a suitable course to meet your<br />

needs. WBS’s Executive Education series <strong>of</strong> courses is targeted not only at senior<br />

executives and executives, but managers <strong>of</strong> all levels who are looking to harness<br />

their skills and translate their knowledge into practical and effective business<br />

solutions. These course <strong>of</strong>fers greater insight into business leadership for the<br />

benefit <strong>of</strong> your individual growth as well as the growth <strong>of</strong> the organisation.<br />

Our innovative and impactful Executive Education courses have been developed by<br />

industry experts and academics to help you refresh and hone your leadership skills.<br />

The Action Learning Project, the Personal Development Plan and the <strong>Business</strong><br />

Cases allow you to test and apply what you’ve learnt in your work environment.<br />

As part <strong>of</strong> the Executive Education series, you will learn how to improve your<br />

effectiveness as a leader, how to apply strategic analysis to practical situations and<br />

how to effectively negotiate for what you want. Our programmes provide you with<br />

the best in knowledge, tools, research and practical exposure.<br />

Wits <strong>Business</strong> School aims to play a clearly-defined role in the future <strong>of</strong> our<br />

country and continent!<br />

Let us help you develop and grow your career.<br />

People are the new<br />

competitive edge in business<br />

13


A NEW ENERGY BANK AIMS TO INCREASE PRIVATE<br />

INVESTMENT IN AFRICAN OIL AND GAS PROJECTS<br />

Afreximbank and the <strong>African</strong> Petroleum Producers Organization (APPO) have signed a<br />

memorandum <strong>of</strong> understanding (MoU) for the creation <strong>of</strong> a multi-billion-dollar energy bank.<br />

Tackling energy poverty in Africa will be at the heart <strong>of</strong> the bank’s mission.<br />

Global investors are shying<br />

away from hydrocarbons,<br />

leaving the continent without<br />

the investment it needs if it is<br />

to capitalise on its resources<br />

PPan-<strong>African</strong> multilateral trade finance institution, the <strong>African</strong><br />

Export-Import Bank (Afreximbank), has signed a Memorandum<br />

<strong>of</strong> Understanding (MoU) with the <strong>African</strong> Petroleum Producers<br />

Organization (APPO) for the creation <strong>of</strong> a multi-billion-dollar<br />

energy bank. Aimed at scaling up private sector investment<br />

in <strong>African</strong> oil and gas projects, the bank will provide critical<br />

financing for new and existing oil and gas projects, as well as<br />

energy developments across the entire value chain. Following<br />

international oil company divestment and the shift in global<br />

investment trends, the bank comes at a particularly critical time<br />

for Africa’s energy sector.<br />

The MoU was signed by Rene Awambeng, Director and Global<br />

Head, Client Relations, Afreximbank, and Dr Omar Farouk,<br />

Secretary General <strong>of</strong> APPO, in the presence <strong>of</strong> HE João Lourenço,<br />

President <strong>of</strong> the Republic <strong>of</strong> Angola, APPO ministers and <strong>African</strong><br />

Energy Chamber (AEC) Executive Chairman NJ Ayuk.<br />

While the developed world calls for the end <strong>of</strong> fossil fuels due<br />

to climate change, Africa continues to face the crisis <strong>of</strong> energy<br />

poverty. Over 600-million people lack access to electricity and<br />

900-million lack access to clean cooking solutions. This situation<br />

has led stakeholders to call for the rapid expansion <strong>of</strong> the oil and<br />

gas sector, recognising the role these resources play in making<br />

energy poverty history. Despite these calls, global investors are<br />

shying away from hydrocarbons, leaving the continent without<br />

the investment it needs if it is to capitalise on its resources.<br />

According to the AEC’s Q1 2022 report, “The State <strong>of</strong> <strong>African</strong><br />

Energy”, from the peak in 2014 at $60-billion, capital expenditure<br />

in Africa declined to $22.5-billion in 2020. Despite projected<br />

increases to $30-billion, significant levels <strong>of</strong> investment are still<br />

required and for this to happen, the role <strong>of</strong> <strong>African</strong> financial<br />

institutions is vital..<br />

Catalyst for Africa-directed investment<br />

Organisations such as Afreximbank have already made notable<br />

progress to drive oil and gas project developments. At the end<br />

<strong>of</strong> 2020, Afreximbank’s total assets and guarantees stood at<br />

14


ENERGY FINANCE<br />

$21.5-billion, with shareholder funds amounting<br />

to $3.4-billion. Other institutions, including<br />

the <strong>African</strong> Development Bank with an active<br />

portfolio <strong>of</strong> projects upwards <strong>of</strong> $12-billion, also<br />

represent critical providers across the <strong>African</strong><br />

energy landscape. However, more needs to be done,<br />

and if large-scale discoveries such as those made<br />

in Namibia and Ivory Coast are to be sufficiently<br />

developed, more capital needs to be made available.<br />

Stepping into this picture, the Afreximbank-<br />

APPO MoU aims to alleviate these challenges,<br />

ensuring the provision <strong>of</strong> capital for Africa’s<br />

upcoming oil and gas projects. Based in Africa,<br />

the bank will operate as an independent entity,<br />

regulated and led by experienced pr<strong>of</strong>essionals who<br />

know and understand Africa’s energy needs. The<br />

proposed bank will not be a substitute for private<br />

investment, however, but rather will serve as a<br />

catalyst for Africa-directed investment.<br />

NJ Ayuk, Executive Chairman <strong>of</strong> the AEC, says:<br />

“The <strong>African</strong> Energy Chamber has been pushing for<br />

the creation <strong>of</strong> an <strong>African</strong> Energy Bank, one that is<br />

<strong>African</strong>-based and Africa-focused, and I am proud<br />

to announce that the Afreximbank and APPO have<br />

taken the first steps towards its creation. The bank<br />

will be critical for Africa’s energy sector, serving as<br />

a catalyst – not a substitute – for private investment<br />

in <strong>African</strong> energy. This is a practical strategy for<br />

prosperity and a pragmatic vision that must be<br />

embraced by all who want to make energy poverty<br />

history and fight climate change.<br />

“Why should our pension funds go to European<br />

banks who say they will not finance <strong>African</strong>s and<br />

call us risky? We need to use that money to finance<br />

oil and gas,” states Ayuk.<br />

The proposed <strong>African</strong> Energy Bank will operate<br />

in the same way as the APPO-created Africa<br />

Energy Investment Corporation – a developmental<br />

financial institution created to channel resources<br />

towards the development <strong>of</strong> Africa’s energy sector.<br />

In addition to ensuring capital is made available for<br />

<strong>African</strong> oil and gas, the bank will serve as a vessel for<br />

mobilising <strong>African</strong>-sourced finance. Rather than<br />

utilising international banks for pension funds, the<br />

bank will serve as an investment corporation that<br />

will channel these funds into <strong>African</strong> projects. This<br />

will ensure high returns <strong>of</strong> investment as well as the<br />

development <strong>of</strong> Africa’s energy sector.<br />

The benefits will be two-fold: the funds will help<br />

drive oil and gas development while the oil and gas<br />

projects will drive socio-economic growth through<br />

the increase in access to energy. Accordingly, the<br />

role this bank will play is pivotal.<br />

CREDIT: Emmaus Studio on Unsplash<br />

The proposed <strong>African</strong> Energy Bank will operate in the same way<br />

as the APPO-created Africa Energy Investment Corporation<br />

– a developmental financial institution created to channel<br />

resources towards the development <strong>of</strong> Africa’s energy sector.<br />

15


THE WINDS OF ENERGY CHANGE<br />

ARE BLOWING IN AFRICA<br />

Diversification <strong>of</strong> the continent’s wind energy sector is expected in response to the rollout <strong>of</strong> new projects in new<br />

regions. An International Finance Corporation (IFC) study has found that Africa’s onshore wind potential is immense. The<br />

organisers <strong>of</strong> the annual Green Energy Africa Summit compiled this article to record how that potential is being realised.<br />

Lake Turkana Wind Farm is not<br />

only one <strong>of</strong> Africa’s biggest<br />

wind projects, it also, at<br />

$650-million, represents the<br />

single-largestprivate investment<br />

in Kenya. Kenya Power buys power<br />

from the facility, which generates<br />

310MW <strong>of</strong> energy. Credit: LTWP<br />

As the continent<br />

continues to seek<br />

ways to expand energy<br />

access, the adoption<br />

<strong>of</strong> wind as a source<br />

<strong>of</strong> energy is expected<br />

to accelerate.<br />

Outside <strong>of</strong> a limited number <strong>of</strong> countries, wind turbines have<br />

remained a rare sight in Africa. But this is not for lack <strong>of</strong> potential.<br />

In 2020, a study by the International Finance Corporation (IFC)<br />

found that continental Africa possesses an onshore wind potential<br />

<strong>of</strong> almost 180 000 TWh/annum, enough to satisfy the entire<br />

continent’s electricity needs 250 times over. As the continent<br />

continues to seek ways to expand energy access, the adoption <strong>of</strong><br />

wind as a source <strong>of</strong> energy is expected to accelerate.<br />

To date, only Morocco, Egypt and South Africa have been<br />

truly successful in harnessing their wind potential and attracting<br />

private capital to set up wind parks. Through its widely-acclaimed<br />

Renewable Energy Independent Power Producer Procurement<br />

Programme (REIPPPP), South Africa has already commissioned<br />

34 wind farms with an installed capacity <strong>of</strong> over 3.3GW, according<br />

to the country’s IPP Office..<br />

And this is far from over. In 2021, the South <strong>African</strong> Ministry <strong>of</strong><br />

Mineral Resources and Energy announced 25 successful bidders<br />

16<br />

under its REIPPPP Bid Window 5, including 12 wind farms with a<br />

total capacity <strong>of</strong> 1 600MW.<br />

Bid Window 6, which was due to allocate a maximum<br />

capacity <strong>of</strong> 1 600MW <strong>of</strong> wind, with projects ranging from<br />

50MW to 240MW, was doubled in capacity by President<br />

Cyril Ramaphosa very soon after its initial announcement, in<br />

response to the problems the country has been having with<br />

rolling blackouts.<br />

Up north, Morocco and Egypt continue to drive wind-energy<br />

developments. The latter has an installed wind-generation capacity<br />

<strong>of</strong> almost 1.5GW across 13 wind farms, according to its Ministry <strong>of</strong><br />

Energy. It now expects to commission another 2GW by 2025 with<br />

an additional 14 wind farms.<br />

On the other side, Egypt has seen fewer but bigger projects. Its<br />

four wind farms have a current installed capacity <strong>of</strong> 1.6GW. The<br />

most recent one, West Bakr, was commissioned by Lekela Power<br />

in November 2021.


WIND POWER<br />

DEVELOPMENT AND MULTILATERAL FINANCE<br />

Across the rest <strong>of</strong> the continent, multilateral and development<br />

finance institutions (DFIs) have played a key role in supporting<br />

the emergence <strong>of</strong> the wind sector.<br />

West Africa has increasingly harnessed its wind potential with<br />

facilities commissioned in Cabo Verde (Cabeólica, 2011), Senegal<br />

(Taiba Ndiaye, 2019) and Mauritania (Boulenouar, 2020). The<br />

projects received significant backing from the likes <strong>of</strong> the Africa<br />

Finance Corporation (AFC), the US International Development<br />

Finance Corporation (DFC) and the Arab Fund for Economic and<br />

Social Development (AFESD).<br />

They have successfully laid the ground for more projects to<br />

follow. In December 2021, the DFC notably provided funding for a<br />

feasibility study to expand Senegal’s 158.7MW Taiba Ndiaye Wind<br />

Farm by another 100MW.<br />

East Africa is also joining the game, led by Kenya. After the<br />

expansion <strong>of</strong> the Ngong facility in 2014, the country commissioned<br />

the 310MW Lake Turkana Wind Farm in 2017 and the 100MW<br />

Kipeto Wind Farm in 2021. The <strong>African</strong> Development Bank<br />

(AfDB) was the mandated lead arranger on Lake Turkana’s debt<br />

package and managed to attract several leading European DFIs<br />

to finance the project. The Kipeto project was mostly funded by<br />

the DFC.<br />

After its success in Cabo Verde, the AFC has moved east where<br />

it is the lead developer on Djibouti’s Red Sea Wind Power Project<br />

in Ghoubet. The 60MW facility is nearing completion and is the<br />

country’s very first independent power producer (IPP).<br />

AN IDEAL CHOICE TO CUT CARBON EMISSIONS<br />

More recently, natural resources and extractive industries have<br />

provided an additional driver <strong>of</strong> wind-energy adoption in Africa.<br />

Publicly-listed oil and gas and mining companies seeking to<br />

decarbonise their portfolio and cut carbon emissions across their<br />

operations are looking at wind projects.<br />

In March 2022, Savannah Energy executed an agreement with<br />

the Ministry <strong>of</strong> Petroleum, Energy and Renewable Energies <strong>of</strong><br />

the Republic <strong>of</strong> Niger to develop the country’s first wind farm.<br />

Savannah Energy, operator <strong>of</strong> some <strong>of</strong> the most prolific oil blocks<br />

in Niger, is planning to construct and operate the 250MW facility<br />

in the Tahoua Region. The wind farm will be structured as an IPP<br />

and is currently in feasibility study. It is expected to be sanctioned<br />

in 2023 for a potential commissioning in 2025.<br />

In Zambia, First Quantum Minerals (FQM) entered into a<br />

new partnership with Chariot and Total Eren in 2022 to develop<br />

430MW <strong>of</strong> solar and wind power for its mining operations. The<br />

company operates Africa’s biggest copper mine by production in<br />

Zambia and it seeks to reduce its carbon footprint by 30% by 2025.<br />

In South Africa, Anglo American is embarking on an even<br />

bigger project with EDF Renewables. Both companies signed<br />

a Memorandum <strong>of</strong> Understanding in March 2022 to work<br />

together on the development <strong>of</strong> a new regional renewable energy<br />

Akhfenir Wind Farm is owned by<br />

Nareva, a subsidiary <strong>of</strong> Morocco’s<br />

National Investment Company.<br />

Credit: Eurogrues Maroc.<br />

Publicly-listed oil and gas<br />

and mining companies<br />

seeking to decarbonise<br />

their portfolio and cut<br />

carbon emissions across<br />

their operations are<br />

looking at wind projects<br />

17<br />

West Bakr Wind Farm, Egypt.<br />

Credit: Lekela


WIND POWER<br />

Camels at the Lake Turkana<br />

Wind Farm. Credit: LTWP<br />

ecosystem (RREE). The scheme is expected to be designed to meet<br />

Anglo American’s operational electricity requirements in South<br />

Africa through the supply <strong>of</strong> 100% renewable electricity by 2030.<br />

It seeks to develop a network <strong>of</strong> on-site and <strong>of</strong>f-site solar and<br />

wind farms with storage up to 5GW to power Anglo American’s<br />

operations.<br />

THE HYDROGEN OPPORTUNITY<br />

Equally important, the emergence <strong>of</strong> Africa’s hydrogen industry<br />

will also be supporting the growth <strong>of</strong> its wind sector.<br />

In 2021, the Chariot Energy Group<br />

signed a MoU with the Mauritanian<br />

Ministry <strong>of</strong> Petroleum, Mines and<br />

Energy to move forward on Project<br />

Nour, a potential green-hydrogen<br />

development <strong>of</strong> up to 10GW.<br />

Under the MoU, Project Nour has<br />

been given exclusivity over 14 400km 2<br />

<strong>of</strong> onshore and <strong>of</strong>fshore area in<br />

Mauritania where pre-feasibility and<br />

feasibility studies will be conducted to<br />

generate solar and wind power used in<br />

electrolysis to split water and produce<br />

green hydrogen and oxygen.<br />

In Namibia, the government issued<br />

in late 2021 a notice <strong>of</strong> award to<br />

Hyphen Hydrogen Energy, the joint-venture <strong>of</strong> Nicholas Holdings<br />

Limited and ENERTRAG South Africa (Pty) Ltd, to develop<br />

Southern Africa’s first gigawatt-scale green-hydrogen project.<br />

The $9.4-billion scheme will be located within the Tsau//Khaeb<br />

National Park, which is among the top five resource-rich locations<br />

in the world for co-located onshore wind and solar, according<br />

to Hyphen. The project’s full development targets 300 000 tons<br />

<strong>of</strong> green hydrogen production a year from 5GW <strong>of</strong> renewable<br />

generation capacity and 3GW electrolyser.<br />

If green hydrogen is to be viable,<br />

many more wind and solar plants<br />

will have to be built. Credit:<br />

Hyphen Hydrogen Energy<br />

Green Energy Africa Summit<br />

Green Energy Africa Summit is the<br />

global platform for stimulating deals<br />

and transactions across the <strong>African</strong><br />

energy sector. The event brings<br />

together governments, national<br />

regulator and utility companies,<br />

independent power players,<br />

investors, financial institutions and<br />

service providers. The summit drives<br />

deals and investment into energy<br />

projects, provides energy access<br />

and solutions for the continent<br />

and shapes the future <strong>of</strong> Africa.<br />

www.greenenergyafricasummit.com<br />

18


GREEN INVESTMENTS<br />

HOW SOUTH AFRICA CAN POWER GREEN<br />

INVESTMENTS AND END LOADSHEDDING<br />

With SA’s energy crisis showing no sign <strong>of</strong> slowing down,<br />

the need to accelerate green investments is now more<br />

urgent than ever. By Wesgro CEO, Wrenelle Stander.<br />

Wesgro is the <strong>of</strong>ficial tourism, trade and investment<br />

promotion agency for Cape Town and the Western Cape.<br />

UUnderstandably, many bemoan loadshedding as it continues to<br />

be a massive drag on productivity and output in key sectors <strong>of</strong><br />

the economy. But there is a silver lining; loadshedding presents<br />

the most opportune moment for South Africa to speed up<br />

the transition to renewables and decarbonise by creating an<br />

environment conducive for green investments.<br />

With its abundant sun and wind, South Africa has the basic<br />

resources to attract investments in that space. But we should be<br />

doing more to lure green investors.<br />

Ramping up targeted incentives to companies operating in the<br />

renewable energy space could be one <strong>of</strong> the most effective ways to<br />

spur green investments into the country, and thus keep the lights<br />

on – which is necessary to fire up the economy and to make a<br />

meaningful dent in unemployment, poverty and inequality.<br />

While South Africa is considered the best area for investment<br />

in Africa by investors from various countries around the world<br />

– topping the list <strong>of</strong> foreign direct investment with 31 projects<br />

in 2020 according to the Attractiveness Report Africa by global<br />

pr<strong>of</strong>essional services firm Ernst & Young (EY) – the country hasn’t<br />

done enough to build on this advantage and scale up renewable<br />

energy investments.<br />

WHAT SHOULD SOUTH AFRICA DO?<br />

So, what should South Africa be doing to establish itself as a<br />

green investment hub? Huge tax benefits, which could effectively<br />

address green economy challenges and changes in consumer<br />

behaviour, are one <strong>of</strong> the most important factors influencing green<br />

investment decisions today. This can be seen in countries that top<br />

EY’s investment attractiveness index, including the US, the UK<br />

and Germany. Examples <strong>of</strong> sustainable activities that receive<br />

substantial tax credits in those countries are in energy-efficient<br />

renovations especially in residential buildings. There are also<br />

19<br />

Following the announcement by the<br />

City <strong>of</strong> Cape Town that residents<br />

could get cash for power, South<br />

<strong>African</strong> company Vers<strong>of</strong>y Solar<br />

received 1 500 enquiries in the month<br />

<strong>of</strong> January. Credit: Vers<strong>of</strong>y Solar


Solar panels are growing in<br />

popularity in domestic, commercial<br />

and rural settings. Marlenique<br />

Estate, Stellenbosch, South Africa.<br />

Credit: New Southern Energy<br />

credits for companies that invest in solar panels, wind and solar<br />

energy equipment. Companies that send waste from landfills for<br />

recycling or reuse also qualify for tax benefits.<br />

A recent study conducted by global research firm Kantar on<br />

behalf <strong>of</strong> Wesgro, the <strong>of</strong>ficial tourism, trade and investment<br />

promotion agency for Cape Town and the Western Cape, shows<br />

that there is a growing appetite to invest in the green economy<br />

globally and many governments are putting in place clear and<br />

From 2024, Cape Town bus<br />

company Golden Arrow will add<br />

60 e-buses to its fleet every year.<br />

Credit: Nick Fordyce/GreenCape<br />

20<br />

targeted measures to make it easier and more incentivised for<br />

players in that market.<br />

The US, for example, recently promulgated the Inflation<br />

Reduction Act <strong>of</strong> 2022 which includes almost $400-billion<br />

in clean energy and climate-related spending. The law partly<br />

puts an emphasis on subsidies and tax credits to stimulate<br />

investment in clean-energy technologies rather than on a<br />

carbon price or penalties. In broad terms, it aims to ramp up<br />

investments in domestic manufacturing capacity, encourage<br />

domestic procurement and the diversification <strong>of</strong> supply<br />

chains, and incentivise research and development and<br />

commercialisation <strong>of</strong> clean technologies like carbon capture,<br />

storage and clean hydrogen.<br />

A major portion <strong>of</strong> the funding under the new law is directed<br />

towards clean energy through a mix <strong>of</strong> tax incentives, grants and<br />

loan guarantees, with the ultimate goal <strong>of</strong> drastically lowering<br />

US carbon emissions. The largest amount <strong>of</strong> funding will support<br />

clean energy and transmission, followed by clean transportation,<br />

including a switch to electric vehicles (EVs).<br />

Similarly, the UK provides generous tax breaks for companies<br />

that operate in a sustainable manner. A Climate Change Levy<br />

(CCL) is paid by businesses in key sectors, including industrial,<br />

commercial and agricultural or public services for electricity, gas<br />

and solid fuels.<br />

But if the firm uses small amounts <strong>of</strong> energy (for example, when<br />

energy is not used as fuel), or uses domestic energy, it doesn’t need<br />

South Africa has the potential to attract more<br />

green investments by implementing policies<br />

and initiatives that promote the use <strong>of</strong> clean<br />

energy and sustainable development


GREEN INVESTMENTS<br />

to pay the main rate <strong>of</strong> CCL on certain supplies. A company can<br />

also claim “enhanced capital allowances” when buying energyefficient,<br />

low or zero-emission technologies, such as electric<br />

vehicles or zero-emission trucks. This reduces the amount <strong>of</strong> tax<br />

to pay. A company can also obtain tax breaks if it sends waste from<br />

landfills to be recycled, incinerated or reused.<br />

THE EUROPEAN GREEN DEAL<br />

Meanwhile, in 2019 a law on climate protection was introduced in<br />

Germany. The law includes, among other measures, tax incentives<br />

for energy-efficient renovation measures in residential buildings or<br />

a mobility bonus for people who commute to work. The “European<br />

Green Deal” – with the aim <strong>of</strong> achieving climate-neutral business<br />

activity by 2050 – also gives the tax policy a decisive role in the<br />

transition to greener and more sustainable growth.<br />

By 2030 Germany plans to produce at least 65% <strong>of</strong> all its<br />

electricity from renewable sources, and all electricity generated<br />

in the country should be greenhouse-gas neutral before 2050.<br />

To secure the green transition, the German government plans<br />

to invest €1.5-billion in green hydrogen to help decarbonise the<br />

economy. Such measures send a clear message to investors that<br />

renewables will be supported and builds confidence.<br />

Meticulously prepared top-down plans <strong>of</strong> a country on<br />

sustainable development give potential investors a defined road<br />

map and show investment opportunities in a clear way.<br />

In South Africa, incentives to fast-track the transition to a green<br />

economy have hardly moved the needle, amid lack <strong>of</strong> clarity on<br />

key government policies. The political will is there, for the most<br />

part. What is needed is urgent and decisive action.<br />

COLLABORATION IN THE WESTERN CAPE<br />

The energy crisis will not be fixed by any one stakeholder and<br />

the collaboration <strong>of</strong> the public and private sectors will be the<br />

catalyst for getting this right. The Western Cape is taking the lead<br />

on that front with Premier Alan Winde recently stating that the<br />

province is looking into ways in which private businesses can be<br />

provided with the necessary support to ramp up more investment<br />

A recent study conducted<br />

on behalf <strong>of</strong> Wesgro shows<br />

that there is a growing<br />

appetite to invest in the<br />

green economy globally and<br />

many governments are<br />

putting in place clear and<br />

targeted measures to make it<br />

easier and more incentivised<br />

for players in that market.<br />

into alternatives. The province has always<br />

emphasised the importance <strong>of</strong> intensifying<br />

and expanding the green energy drive<br />

by boosting relations with local and<br />

international partners.<br />

South Africa has the potential to attract<br />

more green investments by implementing<br />

policies and initiatives that promote<br />

the use <strong>of</strong> clean energy and sustainable<br />

development. This could include setting<br />

clear renewable energy targets, providing<br />

lucrative financial incentives for clean<br />

energy development and creating a<br />

predictable regulatory environment.<br />

By implementing policies and initiatives<br />

that promote clean energy and sustainable development, South<br />

Africa can accelerate the massive rollout <strong>of</strong> renewable energy,<br />

crucial to end the crippling loadshedding crisis. But this<br />

will require a comprehensive and coordinated approach that<br />

involves the government, private sector and civil society. Only<br />

then can SA build a much more attractive environment for<br />

green investors, accelerate the drive to a low-carbon economy,<br />

and end loadshedding which has become the biggest handbrake<br />

on the economy.<br />

For more information about Wesgro: www.wesgro.co.za<br />

Credit: Vers<strong>of</strong>y Solar<br />

The green economy has many subsectors. Gestamp Renewable<br />

Industries is making wind towers in the Atlantis Special<br />

Economic Zone (ASEZ) near Cape Town. Credit: GRI/GreenCape<br />

Wrenelle Stander, CEO <strong>of</strong> Wesgro<br />

21


WHAT ARE THE INTELLECTUAL PROPERTY<br />

CONSIDERATIONS OF THE AFRICAN CONTINENTAL<br />

FREE TRADE AREA?<br />

The <strong>African</strong> Continental Free Trade Area (AfCFTA), which forms part <strong>of</strong> Agenda 2063, has the potential<br />

to integrate <strong>African</strong> countries, boost intra-<strong>African</strong> trade by eliminating tariffs and non-tariff barriers<br />

and reduce poverty in Africa. The agreement covers trade in goods and services, investment, intellectual<br />

property (IP) rights, competition policy and ecommerce. Chris Mhangwane, associate, and David Cochrane,<br />

partner, at law firm Spoor & Fisher, look at the intellectual property implications <strong>of</strong> the agreement.<br />

Credit: Romain Dancre on Unsplash<br />

It was decided at the Assembly <strong>of</strong> Heads <strong>of</strong> State and Government<br />

in Addis Ababa in January 2012 to fast-track the establishment <strong>of</strong><br />

an <strong>African</strong> Continental Free Trade Area (AfCFTA) to boost intra-<br />

<strong>African</strong> Trade. As <strong>of</strong> May 2022, 43 countries within the <strong>African</strong><br />

Union have ratified the agreement establishing AfCFTA and are<br />

now State Parties <strong>of</strong> AfCFTA. Only State Parties have rights and<br />

obligations under the AfCFTA agreement.<br />

The success <strong>of</strong> AfCFTA is largely dependent on negotiations<br />

and the cooperation <strong>of</strong> member states <strong>of</strong> the <strong>African</strong> Union and<br />

subsequently State Parties <strong>of</strong> AfCFTA. The AfCFTA negotiations<br />

take place in three phases.<br />

Phase I covers protocols on trade in goods and services, and<br />

rules and procedures on settlement <strong>of</strong> disputes. Regarding<br />

PhaseI, AfCFTA has reached about 87.7% agreement on the rules<br />

22


COPYRIGHT<br />

The aim behind AfCFTA Phase II Protocols<br />

appears to be limited to cooperation, rather than<br />

the replacement <strong>of</strong>, for example, intellectual<br />

property laws in the different <strong>African</strong> countries.<br />

<strong>of</strong> origin (RoO) on the protocol on goods. The outstanding RoO<br />

include some clothing and textile products, sugar and automotive<br />

products. This means that tariffs may be eliminated on 87.7% <strong>of</strong><br />

goods so far.<br />

Phase II covers protocol on intellectual property rights,<br />

investment and competition policy. Phase III covers ecommerce.<br />

According to Wamkele Mene, Secretary-General <strong>of</strong> AfCFTA,<br />

the preliminary process has started for Phase II negotiations<br />

on competition policy, investment protection and intellectual<br />

property rights.<br />

The negotiations are ongoing and there is a directive to conclude<br />

the negotiations on Phase II, including the rules that are required<br />

for intellectual property rights, by the end <strong>of</strong> 2022.<br />

Article 4(c) <strong>of</strong> the Agreement provides that “State Parties<br />

shall cooperate on investment, intellectual property rights and<br />

competition policy.”<br />

The aim behind AfCFTA Phase II Protocols appears to be<br />

limited to cooperation, rather than the replacement <strong>of</strong>, for<br />

example, intellectual property laws in the different <strong>African</strong><br />

countries. This is not surprising given that Intellectual Property<br />

(IP) rights are generally territorial in nature..<br />

WILL PRECEDENT BE FOLLOWED?<br />

It will be interesting to see how AfCFTA will deal with IP rights<br />

in this regard and whether they will follow the <strong>African</strong> Regional<br />

Intellectual Property Organization (ARIPO), Organisation<br />

Africaine de la Propriété Intellectuelle (OAPI) regional model,<br />

or a hybrid-IP model that would be flexible enough to allow the<br />

different <strong>African</strong> countries to manage their IP legislation and<br />

cooperate with other <strong>African</strong> countries in terms <strong>of</strong> non-binding<br />

IP recommendations..<br />

ARIPO provides for regional registration and administration <strong>of</strong><br />

IP rights through a central <strong>of</strong>fice while permitting member states<br />

to guard their national IP law and IP <strong>of</strong>fices, which simplifies IP<br />

rights protection for applicants who wish to invest in the region.<br />

Unlike in ARIPO, IP registration in OAPI automatically extends<br />

to all member states <strong>of</strong> OAPI and there is a single law covering<br />

all members states. It is not possible to have IP protection in only<br />

some <strong>of</strong> the member states but not others in OAPI. It is suggested<br />

that AfCFTA’s IP Protocol should include the following:.<br />

• create a common coordination and an operational<br />

cooperation mechanism that would enable the countries to<br />

share experience, stimulate linkage, diffuse knowledge, and<br />

collaborate in various matters such as the examination <strong>of</strong><br />

patents and the enforcement <strong>of</strong> IP rights<br />

• provide for regional exhaustion <strong>of</strong> IP rights<br />

• oblige members to ensure the protection <strong>of</strong> geographical<br />

indications (GIs), either through a sui generis system or by<br />

certification and collective marks<br />

• draw up a position on plant-variety protection (PVP) by<br />

determining the minimum standards on plant-variety<br />

protection or implementing a substantive law<br />

• develop and implement regulations to enhance protection<br />

<strong>of</strong> traditional knowledge, cultural expressions and genetic<br />

resources.<br />

Ideally, the chosen IP model should meet the objectives <strong>of</strong><br />

AfCFTA and the specific needs <strong>of</strong> each country.<br />

The creation <strong>of</strong> AfCFTA provides a unique opportunity to<br />

integrate <strong>African</strong> countries, boost intra-<strong>African</strong> trade by<br />

eliminating tariffs and non-tariff barriers and to reduce poverty<br />

in Africa. If the agreement is fully implemented by 2035, it is<br />

estimated that over 30-million <strong>African</strong>s would be lifted from<br />

extreme poverty.<br />

43 countries within the <strong>African</strong> Union have ratified the Agreement<br />

establishing AfCFTA and are now State Parties <strong>of</strong> AfCFTA. It is not possible to have<br />

IP protection in only some <strong>of</strong> the member states but not others in OAPI<br />

23<br />

Credit: Dominika Roseclay/Pexels<br />

About Spoor & Fisher<br />

Spoor & Fisher is Africa’s<br />

largest specialised intellectual<br />

property law firm, with <strong>African</strong><br />

roots and global reach. The firm<br />

specialises in all aspects <strong>of</strong> IP law,<br />

including trademarks, copyright,<br />

patents, registered designs,<br />

anti-counterfeiting, commercial/<br />

transactional work involving IP,<br />

and litigation in these fields. Spoor<br />

& Fisher is ranked in the top band<br />

in the latest editions <strong>of</strong> leading<br />

legal directories, both local and<br />

international, and has a reputation<br />

for pioneering thought leadership<br />

and contributions to IP law and<br />

academia. Clients have trusted<br />

the firm to protect, manage and<br />

enforce their IP across Africa and<br />

the Caribbean for over 100 years.<br />

For more information:<br />

www.spoor.com


AFRICAN BUSINESSES SHOULD DIVERSIFY SUPPLY<br />

CHAINS TO MITIGATE THE GLOBAL LOGISTICS CRUNCH<br />

Philip Myburh, Head <strong>of</strong> Trade and Africa-China, <strong>Business</strong> and Commercial Clients, Standard Bank, comments<br />

on turmoil in trade and logistics, a situation only made worse by Russia’s invasion <strong>of</strong> Ukraine.<br />

Temanating from.<br />

If any trace <strong>of</strong><br />

in demand for goods and supplies.<br />

Covid-19is detected<br />

on a product,<br />

China will close<br />

the associated<br />

line down until it is<br />

deemed safe again<br />

24<br />

China has taken decades to build<br />

up an efficient logistics chain.<br />

Credit: Jason Yuen on Unsplash<br />

The world <strong>of</strong> international trade is dealing with a perfect storm<br />

<strong>of</strong> challenges on multiple fronts. This is having adverse<br />

consequences for global supply chains, many <strong>of</strong> which rely on<br />

exports to and imports from China – where much <strong>of</strong> the friction is<br />

With the rollout <strong>of</strong> global vaccination programmes continuing<br />

at a healthy pace, there has been cautious optimism that economic<br />

activity will continue to recover and return to a semblance <strong>of</strong><br />

normality. However, as it stands, the trade ecosystem is anywhere<br />

but in a normal state <strong>of</strong> operation and in no shape to meet the uptick<br />

The Covid-19 pandemic had wide-reaching impact on<br />

international trade, disrupting long-established trade and travel<br />

routes while significantly shifting levels <strong>of</strong> supply and demand.<br />

One <strong>of</strong> the key drivers <strong>of</strong> the misallocation <strong>of</strong> trade is the fact<br />

that when consumers were home-bound, spending on services was<br />

replaced by increased spending on goods. This was exacerbated by<br />

increased spending power from stimulus programmes in places like<br />

the United States. Unfortunately, logistics service providers didn’t<br />

anticipate the extent <strong>of</strong> this demand impact on supply chains, which<br />

placed pressure on a system that is still trying to play catch up.<br />

Additionally, supply chains continue to be disrupted by port<br />

closures, limited air freight capacity and factory shutdowns or<br />

restrictions, particularly on the China side. If any trace <strong>of</strong> Covid-19<br />

is detected on a product, China will close the associated line down<br />

until it is deemed safe again (this could be for months at a time).<br />

Ships coming into that line might already be halfway there and are<br />

then forced to divert from their typical lines to other locations or<br />

countries to <strong>of</strong>fload stock.<br />

It has taken China multiple decades to get to an efficient, optimal<br />

flow <strong>of</strong> its shipping vessels and lines. It is an intricate system that<br />

determines which goods, container sizes and types <strong>of</strong> ships are<br />

used on which line. If that system is shut down. overnight and<br />

certain parts are activated sporadically, it results in inefficiencies


SUPPLY CHAIN<br />

AfCFTA is aggressively driving opportunities among <strong>African</strong> countries<br />

and working to resolve challenges hindering inter-Africa trade.<br />

Container traffic keeps modern economies<br />

functioning. Credit: Fatih Turan/Pexels<br />

with containers stuck in certain parts <strong>of</strong> the world because the<br />

system is out <strong>of</strong> kilter. This leads to a critical shortage <strong>of</strong> containers<br />

and causing shipping costs to skyrocket. Ultimately, it is the end<br />

consumer that will bear the brunt <strong>of</strong> increased costs.<br />

While China is very much committed to enhancing relations<br />

and trade with <strong>African</strong> economies, it is focusing its energy on<br />

unlocking trade blockages on more pr<strong>of</strong>itable trade routes such<br />

as those with developed economies like the United States, Europe<br />

and Southeast Asia.<br />

AFRICAN IMPACT<br />

Unfortunately for the <strong>African</strong> continent, whose largest trade<br />

partner is China, this is having a significant impact. The continent<br />

is a net importer and relies heavily on imports from China.<br />

Without shipping vessels coming through to <strong>African</strong> harbours<br />

with containers to <strong>of</strong>fload, it creates a multiplier effect as there<br />

is then a lack <strong>of</strong> containers to export goods out <strong>of</strong> the continent.<br />

While a significant percentage <strong>of</strong> global trade also happens<br />

in aviation, very few planes flew in and out <strong>of</strong> Africa during<br />

the various lockdowns, including the China corridor, which<br />

means the continent lost and is losing further capacity to send<br />

and receive goods.<br />

China has also instituted additional measures on importing<br />

goods from the rest <strong>of</strong> the world. For example, it has a<br />

differentiated policy with regards to frozen goods compared<br />

with other countries. Its departure point is that Covid-19 can be<br />

transmitted on frozen goods. So, for a business<br />

looking to export frozen seafood to China, it<br />

suddenly takes longer, costs more and becomes<br />

a more rigorous process as the product must go<br />

through Covid-19 checks at Chinese points <strong>of</strong><br />

entry.<br />

All these factors have left <strong>African</strong> businesses,<br />

who are feeling the brunt <strong>of</strong> shortages in stock<br />

and an increased cost <strong>of</strong> logistics, in a tight<br />

spot. With significant uncertainty over the<br />

short to medium term, the diversification <strong>of</strong><br />

supply chains is therefore critical for businesses<br />

to weather challenges in the short term and<br />

to reduce reliance on a specific environment,<br />

geography or supplier. The more you can<br />

diversify, the better.<br />

There are expectations that Africa’s trade<br />

challenges with China will resolve in the short term<br />

and China will undoubtedly remain a key supplier<br />

and trade partner to Africa. It is also important to<br />

remember that China is an exceptionally large<br />

country. By way <strong>of</strong> example, there are cities in<br />

China that are as far from each other as Johannesburg from Nairobi,<br />

so if there is a challenge or a Covid-19 outbreak in one area it still<br />

leaves multiple alternatives still within the country.<br />

But there is also an opportunity to look for trade partners,<br />

suppliers or clients on the continent itself. Of course, Africa’s<br />

evident limitations in certain sectors and logistics capabilities<br />

hamper optionality. However, the <strong>African</strong> Continental Free Trade<br />

Area (AfCFTA) is aggressively driving opportunities among<br />

<strong>African</strong> countries and working to resolve challenges hindering<br />

inter-Africa trade.<br />

The continent is a net importer<br />

and relies heavily on imports from<br />

China. Without shipping vessels<br />

coming through to <strong>African</strong> harbours<br />

with containers to <strong>of</strong>fload, it<br />

creates a multiplier effect as there<br />

is then a lack <strong>of</strong> containers to<br />

export goods out <strong>of</strong> the continent.<br />

SOLUTIONS AVAILABLE<br />

With solutions such as Trade Club and our Africa China Trade<br />

solutions, Standard Bank is playing a key role in supporting<br />

businesses with all elements <strong>of</strong> trade including access to relevant<br />

information, connecting them to reputable suppliers and buyers.<br />

Standard Bank also advises its clients on appropriate insurance<br />

solutions to help mitigate associated risks, with various financial<br />

solutions available that help to de-risk certain elements <strong>of</strong> the<br />

trade process.<br />

Lastly, Standard Bank’s Trade Suite takes full ownership <strong>of</strong><br />

our clients’ logistics needs so that all the challenges experienced<br />

throughout the process are managed by us on behalf <strong>of</strong> the<br />

customer.<br />

In times <strong>of</strong> uncertainty, businesses want to make sure that<br />

they have the right partnerships. With Standard Bank’s diverse<br />

footprint, experience and solutions, it is the financial services<br />

partner to help businesses navigate these stormy seas whether the<br />

aim is to grow or fortify their businesses (or both).<br />

25<br />

Standard Bank’s Head <strong>of</strong> Trade<br />

and Africa-China, <strong>Business</strong> and<br />

Commercial Clients, Philip Myburgh


“BEST PLACES IN AFRICA” WILL SHINE A<br />

SPOTLIGHT ON AFRICAN BRANDSA BRANDS<br />

The Intra-Africa Trade Fair 2021 was the backdrop for an announcement <strong>of</strong> a new initiative to<br />

promote <strong>African</strong> brands in tourism, investment and citizen mobilisation. Brand Africa is<br />

the body behind the idea, which aims to see participating <strong>African</strong> brands grow and flourish.<br />

Despite being rich<br />

in valued mineral<br />

resources, enviable<br />

indigenous fauna and<br />

flora, Africa attracts<br />

roughly only 5% <strong>of</strong><br />

the world’s inbound<br />

tourism and FDI.<br />

Rwanda’s Volcanoes National<br />

Park, home to famous mountain<br />

gorillas, could be a contender<br />

for “Best Places in Africa”.<br />

Credit: Visit Rwanda<br />

Brand Africa has launched “Brand Africa | Africa’s Best Places”,<br />

a pan-<strong>African</strong> initiative to recognise and rank the best places on<br />

the continent for tourism, investment and citizen mobilisation.<br />

The goal <strong>of</strong> the initiative is to inspire pride, raise standards and<br />

grow the competitiveness <strong>of</strong> <strong>African</strong> places – countries, cities and<br />

destinations. The inaugural awards and rankings <strong>of</strong> the “Brand<br />

Africa | Africa’s Best Places” will be celebrated and published<br />

in 2022.<br />

The “Brand Africa | Africa’s Best Places” initiative builds on the<br />

inaugural Brand Africa Forum in 2010, which convened <strong>African</strong><br />

and global place-branding decision-makers and thought leaders<br />

to reflect on how <strong>African</strong> nations individually and the continent<br />

collectively can develop a supranational competitive advantage.<br />

Every year since then, Brand Africa has announced the “Brand<br />

Africa 100 | Africa’s Best Brands”, the widely referenced pan-<br />

<strong>African</strong> survey and ranking <strong>of</strong> brands in Africa, which over the<br />

past 10 years has established that only 20% <strong>of</strong> the most admired<br />

brands in Africa are <strong>African</strong>.<br />

The new initiative was announced by Brand Africa chairman,<br />

Thebe Ikalafeng, on the sidelines <strong>of</strong> the Intra-Africa Trade Fair 2021<br />

26<br />

Thebe Ikalafeng, Brand Africa chairman<br />

Credit: World Tourism Organization<br />

(IATF 2021) which took place in Durban, KwaZulu-Natal, South<br />

Africa, in November 2021.<br />

“Despite being rich in valued mineral resources, enviable<br />

indigenous fauna and flaura, a youthful population and being the<br />

second-most populous continent accounting for 17.5% <strong>of</strong> world<br />

population, Africa attracts roughly only 5% <strong>of</strong> the world’s inbound<br />

tourism and FDI,” says Ikalafeng. “Recognising Africa’s Best Places<br />

will inspire pride in <strong>African</strong> places, enhance their reputations and<br />

competitiveness, grow tourism and investment and ultimately<br />

contribute to the greater development and image <strong>of</strong> the continent,”<br />

he concludes.<br />

The “Brand Africa | Africa’s Best Places” initiative is structured<br />

into two primary categories: (1) adjudicated awards and (2)<br />

rankings. In the adjudicated awards category, <strong>African</strong> private and<br />

public institutions, agencies and practitioners can submit entries<br />

for initiatives and campaigns for tourism, trade and investment,<br />

economic development and citizen mobilisation implemented<br />

internally in Africa or externally for Africa.<br />

In the rankings category, an independent pan-<strong>African</strong> survey<br />

among citizens, visitors and investors will be undertaken to<br />

determine the best places for tourism, investment and to live.<br />

Reflecting on the pandemic and the context <strong>of</strong> the IAFT 2021<br />

whose theme is focused on the <strong>African</strong> Continental Free Trade<br />

Area (AfCFTA) which aims to accelerate intra-Africa investment<br />

and trade from 18% to 50% in 2030 through a single market for<br />

goods and services across 55 countries, Ikalafeng, who has been to<br />

every country in Africa, believes that the highlighting <strong>of</strong> Africa’s<br />

Best Places and the championing <strong>of</strong> “Made in Africa Brands,” will


TOURISM<br />

Brand Africa has announced the “Brand<br />

Africa 100 | Africa’s Best Brands”,<br />

the widely referenced pan-<strong>African</strong><br />

survey and ranking <strong>of</strong> brands in Africa,<br />

which over the past 10 years has<br />

established that only 20% <strong>of</strong> the most<br />

admired brands in Africa are <strong>African</strong>.<br />

inspire and mobilise <strong>African</strong> entrepreneurs, grow tourism,<br />

trade and investment and accelerate industrialisation. This<br />

will ultimately contribute to Africa’s growth, competitiveness<br />

and distinctiveness in a post-pandemic world where nations<br />

are increasingly having to look internally for sustainability.<br />

The inaugural advisory council for the initiative includes<br />

experts such as as Dr Dr Keith Dinnie, a global a global authority authority on city, on<br />

city, region region and country-brand management and author and author <strong>of</strong> a<br />

textbook <strong>of</strong> a textbook on nation nation branding; branding; Kwame Senou, Kwame Vice-President<br />

Senou, at President Opinion at and Opinion Public and in Public Benin in and Benin Ivory and Coast Ivory and Coast Vice- and<br />

Vice-Chairman for Brand for Africa Brand Francophone Africa Francophone Africa and Africa Central and<br />

Africa; Central Africa; New York-based New York-based Eloine Eloine Barry, Barry, the the CEO CEO <strong>of</strong> <strong>of</strong> Africa<br />

Media Agency; Kwakye Donkor, the CEO <strong>of</strong> <strong>of</strong> Africa Tourism<br />

Partners and Masego Maponyane, broadcaster, actor, traveller,<br />

entrepreneur and philanthropist.<br />

Best places categories<br />

The “Brand Africa | Africa’s Best Places”<br />

will be awarded for effective strategy,<br />

implementation and return on<br />

investment for nation, city or<br />

destination branding initiatives<br />

across six categories:<br />

• Trade, Investment and<br />

Economic Development<br />

• Tourism<br />

• Private Public Partnerships<br />

•Citizen Engagement<br />

• Conservation and Sustainability<br />

• Cross Border Collaborations<br />

The awards are are open to to global and and <strong>African</strong> private and and public public About Brand Africa<br />

institutions, agencies and and practitioners. The The adjudication will will Established in 2010, Brand Africa is<br />

be be done by by a a diverse and and representative global <strong>African</strong> panel panel <strong>of</strong> <strong>of</strong> an inter-generational movement to<br />

eminent <strong>of</strong> <strong>of</strong> place-branding experts, thought leaders, academia, inspire a brand-led <strong>African</strong> renaissance<br />

policy and decision makers and practitioners.<br />

For For Information on on other other Brand Brand Africa Africa initiatives and the and “Brand the “Brand<br />

Africa | | Africa’s Best Best Places” Places” visit visit www.brand.africa/places<br />

to drive Africa’s competitiveness,<br />

connect Africa and create a<br />

positive image <strong>of</strong> the continent.<br />

The Royal Palaces <strong>of</strong> Abomey,<br />

a UNESCO World Heritage Site,<br />

bear witness to the historical<br />

Kingdom <strong>of</strong> Dahomey in modern-<br />

day Benin. Credit: UNESCO<br />

27 17


TOURISM<br />

VICTORIA FALLS HAS A NEW LUXURY HOTEL<br />

The Palm River Hotel has opened on the banks <strong>of</strong> the Zambezi River.<br />

The vision for the<br />

Palm River Hotel was a<br />

unique hotel <strong>of</strong>fering<br />

luxury without<br />

compromising a sense<br />

<strong>of</strong> home comfort;<br />

unimpeded views<br />

which maintained<br />

shelter and privacy;<br />

the convenience <strong>of</strong><br />

a central location<br />

preserved within a<br />

tranquil bubble.<br />

ABOUT SPENCER’S CREEK GROUP<br />

Spencer’s Creek (Pvt) Ltd was<br />

founded in 1970, and completed its<br />

first establishment, Ilala Lodge Hotel,<br />

in 1991. The Palm River Hotel marks<br />

the group’s second hotel, both <strong>of</strong><br />

which are located within minutes<br />

<strong>of</strong> Africa’s Natural World Wonder,<br />

Victoria Falls. The Palm River Hotel<br />

has been developed together<br />

with investment partner Old<br />

Mutual Zimbabwe Limited.<br />

TThe opening <strong>of</strong> the new Palm River Hotel marked the completion<br />

<strong>of</strong> a project delayed by the Covid-19 pandemic and a new chapter<br />

for tourism at Victoria Falls.<br />

The hotel is a joint investment by Old Mutual Zimbabwe and<br />

the Spencer’s Creek Group. Among the guests who attended the<br />

opening ceremony <strong>of</strong> Victoria Falls’ first 73-room hotel on the<br />

Zambezi River were the Mayor <strong>of</strong> the Municipality <strong>of</strong> Victoria<br />

Falls, Cllr Dhlamini, investment partner Old Mutual Zimbabwe,<br />

and members <strong>of</strong> the National Parks and Wildlife Authority.<br />

Speaking at the ceremony, Jim Brown, CEO <strong>of</strong> Spencer’s Creek<br />

Group said, “Today we are surrounded by many establishments who<br />

have supported our vision <strong>of</strong> this impressive $24-million project.<br />

The Spencer’s Creek Group has been in the tourism industry in<br />

Victoria Falls for 50 years and is renowned for its existing property,<br />

Ilala Lodge Hotel, located in the heart <strong>of</strong> Victoria Falls. We continue<br />

to participate, contribute and collaborate with all sectors <strong>of</strong> local<br />

government and the local business community.”<br />

Brown noted the project’s duration: “The Palm River Hotel has<br />

been a substantial project, running over the course <strong>of</strong> two-anda-half<br />

years. We have endured dire circumstances through the<br />

28<br />

Covid-19 pandemic, which has only further demonstrated<br />

our confidence, and the confidence <strong>of</strong> our investment<br />

partners, to achieve this iconic architectural triumph.”<br />

The Palm River Hotel opened to the public in December<br />

2021, <strong>of</strong>fering 31 rooms including 28 Deluxe Rooms, a<br />

Presidential Suite, an Executive Suite and an exclusive<br />

Villa. Phase two <strong>of</strong> the project will bring the number <strong>of</strong><br />

rooms to 73 rooms and suites.<br />

Brown acknowledged the hard work and resilience <strong>of</strong> the<br />

design and construction teams for their efforts to source<br />

materials, skills and labour from within the Zimbabwean<br />

borders. “During construction we have employed over<br />

150 building labour and countless skilled senior staff<br />

from across the country. Furthermore, the opening <strong>of</strong><br />

the hotel allows a further 200 employment opportunities<br />

for hospitality staff and personnel from within the local<br />

Victoria Falls region,” Brown added.<br />

Brown credited the return <strong>of</strong> tourism confidence in<br />

Zimbabwe to the ongoing efforts <strong>of</strong> the government for<br />

their vaccine roll-out programme, the relaxation <strong>of</strong> the<br />

Covid-19 protocols and reopening <strong>of</strong> the land borders for tourism.<br />

DESIGN AMBITIONS<br />

The vision for the Palm River Hotel was simultaneously simple and<br />

complex: a unique hotel <strong>of</strong>fering luxury without compromising<br />

a sense <strong>of</strong> home comfort; unimpeded views which maintained<br />

shelter and privacy; the convenience <strong>of</strong> a central location preserved<br />

within a tranquil bubble.<br />

The Palm River Hotel has been inspired by the architectural<br />

style <strong>of</strong> the Queenslander, distinct in its savvy use <strong>of</strong> timber and<br />

corrugated iron and its consideration <strong>of</strong> climatic conditions.<br />

Highly-skilled and pr<strong>of</strong>essional teams <strong>of</strong> Zimbabwean architects<br />

and interior designers have taken these principles and modified<br />

them to create a hotel that is at once aesthetic and functional,<br />

modern and timeless, cosmopolitan and perfectly suited to the<br />

local environment. The innovative blend <strong>of</strong> traditional East-Coast<br />

Australian design and the unique landscape <strong>of</strong> the upper Zambezi<br />

River has resulted in a brand new and distinctive landmark for<br />

Victoria Falls.<br />

www.palmriverhotel.com


EVENTS<br />

AFRICAN EVENTS<br />

Global Africa Network (GAN) is the media partner <strong>of</strong> the following upcoming events:<br />

AFRICA ENERGY INDABA<br />

Cape Town – 7 to 9 March 2023<br />

The 15th Africa Energy Indaba Conference will discuss, debate and seek solutions to enable adequate energy<br />

generation across Africa. A diverse group <strong>of</strong> luminaries and high-pr<strong>of</strong>ile speakers will share their real-world insights<br />

about the changing energy landscape in Africa. The 8th Annual Africa Gas Forum will be held. The Forum<br />

has been created to ensure a balance between country-specific opportunities as well as common issues that<br />

affect the whole region such as exploration activity, licensing rounds, development plans and the move to gas,<br />

new tax regimes, regional infrastructure projects, pipelines, LNG terminals, security,<br />

local content initiatives, investment requirements and other key upcoming projects.<br />

In addition to providing a platform for the most groundbreaking and diverse energy<br />

panels, the Africa Energy Indaba hosts a two-day energy exhibition where worldclass<br />

industry organisations demonstrate their commitment to provide the solutions<br />

Africa needs to meet its growing energy demands.<br />

For more information: https://energyindaba.co.za/<br />

WTM AFRICA 2023<br />

CAPE TOWN – 3 TO 5 APRIL 2023<br />

World Travel Market Africa is the only event<br />

where you can, according to the organisers,<br />

simultaneously generate sales leads, launch<br />

new products, enter new markets, raise brand<br />

awareness, size up your competition, conduct<br />

market research, command press attention<br />

and develop and maintain relationships.<br />

World Travel Market Africa delivers<br />

the leading global events for the travel<br />

industry. One <strong>of</strong> six shows in the WTM<br />

portfolio, the Africa show was launched<br />

in 2014 under the Africa Travel Week<br />

umbrella. Join over 6 000 travel industry<br />

pr<strong>of</strong>essionals as they attend Africa’s leading<br />

and only business-to-business exhibition<br />

for both the inbound and outbound <strong>African</strong><br />

travel and tourism markets. Mirrored on<br />

WTM flagship events like WTM London<br />

and the Arabian Travel Market in Dubai,<br />

WTM Africa delivers a proven mix <strong>of</strong> Hosted<br />

Buyers, Buyers’ Club members, media<br />

representatives, pre-schedule appointments,<br />

networking, evening functions and invited<br />

travel trade visitors.<br />

For more information:<br />

www.wtm.com/africa/en-gb.html<br />

AFRICA’S TRAVEL INDABA 2023<br />

DURBAN – 8 TO 11 MAY 2023<br />

Africa’s Travel Indaba is an iconic <strong>African</strong> leisure trade show,<br />

owned by South <strong>African</strong> Tourism, with the specific objective <strong>of</strong><br />

creating market access for a vast array <strong>of</strong><br />

<strong>African</strong> leisure-tourism products.<br />

Africa’s Travel Indaba is a three-day<br />

trade show preceded by a dedicated<br />

<strong>Business</strong> Opportunity Networking Day (BONDay) which seeks<br />

to create a platform for thought leadership, knowledge sharing and<br />

obtaining the latest in global trends and local insights. The BONDay<br />

programme is developed in close collaboration with global tourism<br />

organisations, continental experts as well as industry associations.<br />

The trade show exists to provide the ideal platform for <strong>African</strong><br />

tourism exhibitors to showcase their <strong>of</strong>ferings to international<br />

and local buyers, destination marketing companies and leisure<br />

tourism services partners. It is the most formidable platform on<br />

the continent to meet face-t<strong>of</strong>ace<br />

with the most influential<br />

buyers in the world, and to gain<br />

access to Africa’s excellence and<br />

its endless possibilities. These<br />

are the business opportunities<br />

and quality connections that will<br />

shape Africa’s tomorrow.<br />

For more information:<br />

www.indaba-southafrica.co.za/<br />

ENLIT AFRICA<br />

CAPE TOWN – 16 TO 18 MAY 2023<br />

Enlit Africa hosts Africa’s entire power and energy industry in this premier<br />

conference and exhibition space. As the leading platform, we gather<br />

Africa’s energy community for three days to meet and inspire each other<br />

in Cape Town. Enlit Africa includes live and digital events, exhibitions, and<br />

exclusive one-on-one interviews with leaders in the energy sector, together with product launches,<br />

innovative technology showcases and more. For more information: https://enlit-africa.com/<br />

29


COUNTRY PROFILE<br />

ANGOLA<br />

A major oil producer is trying to diversify its economy.<br />

TThe death in 2022 <strong>of</strong> former president José Eduardo dos Santos brought to an<br />

Photos: Pixabay<br />

end the era <strong>of</strong> a particular kind <strong>of</strong> anti-colonial politics in Angola. Although<br />

he gave up the presidency in 2017, the legacy <strong>of</strong> dos Santos and the influence<br />

<strong>of</strong> his children on national politics and economics sparked increasingly<br />

heated debate.<br />

His anointed successor, President João Lourenço, did not act as though<br />

he was beholden to dos Santos, despite the latter having held on to power<br />

for 38 years. Among the people fired by the new president were the former<br />

president’s daughter, Isabel dos Santos, who had been the chief <strong>of</strong> Sonangol,<br />

the state oil company. She moved to Spain.<br />

MPLA won just 51% <strong>of</strong> the vote in the country’s fourth post-war elections<br />

held in 2022, with long-time rivals (and former civil war opponents) UNITA<br />

gaining 44%. The civil war started soon after Angola gained independence<br />

from Portugal in 1975 and lasted 27 years. The MPLA had the support <strong>of</strong><br />

Cuba while UNITA were backed by South Africa, who eventually invaded<br />

Angola in an attempt to defeat MPLA and defend their occupation <strong>of</strong><br />

Namibia (then known as South West Africa).<br />

Photo: Mustafa Omar on Unsplash<br />

Capital: Luanda. Other towns/cities: Huambo, Lobito, Lubango. Population: 34.7-million (2022).<br />

Real GDP (PPP): $203.71-billion (2020). Real GDP per capita: $6 200 (2020). Currency: Kwanza.<br />

Regional Economic Community: Southern <strong>African</strong> Development Community (SADC), Community<br />

<strong>of</strong> Portuguese Language Countries (CPLP). Land mass: 1.25-million km 2 . Coastline: 1 600km.<br />

Resources: Bauxite, copper, diamonds, feldspar, gold, iron ore, petroleum, uranium, bananas,<br />

cassava, citrus, maize, pineapples, potatoes, sugar cane, sweet potatoes. Main economic sectors:<br />

Oil contributes 50% <strong>of</strong> GDP, more than 90% <strong>of</strong> the country’s exports and more than 70% <strong>of</strong> revenue<br />

collected by the government. Angola belongs to OPEC. Other sectors: Agriculture, mining, cement,<br />

basic metal products, fish and food processing, brewing, tobacco products, sugar, textiles.<br />

New sectors for investment: Fintech (laws relating to payments and telecommunications have been<br />

tightened), ICT. Key projects: The World Bank is supporting a Growth and Inclusion Development<br />

Policy Financing Project for Angola, with the aims <strong>of</strong> supporting the government <strong>of</strong> Angola to achieve<br />

more sustainable and inclusive growth, through a macro-financial and institutional environment<br />

that is conducive to private-sector-led growth and financial and social inclusion. Chief exports:<br />

Crude petroleum, diamonds, natural gas, refined petroleum, ships. Top export destinations:<br />

China, India, UAE, Portugal, Spain. Top import sources: China, Portugal, Nigeria, Belgium, US,<br />

South Africa, Brazil. Main imports: Refined petroleum, scrap vessels, meat, rice, palm oil.<br />

Infrastructure: Airports 32 (paved); railways 2 852km (2014); roadways 26 000km, <strong>of</strong> which<br />

13 600km paved (2018). Major seaports: Cabinda, Lobito, Luanda, Namibe. LNG export terminal:<br />

Angola Soyo. Merchant marine: 54 (cargo 13, oil tanker 8, other 33, (2021). Pipelines: 352km gas,<br />

85km liquid petroleum gas, 1 065km oil, 5km oil/gas/water (2013). ICT: Mobile subscriptions per 100<br />

inhabitants: 45 (2020). Internet percentage <strong>of</strong> population: 36% (2020). ICT Development Index<br />

2017 (ITU) ranking: 160 in world. Climate: North varies between dry, cool season (May to October)<br />

and hot, rainy season (November to April). South is semi-arid along the coast north to Luanda,<br />

which is part <strong>of</strong> a narrow coastal plain. The country shares two major rivers with its neighbours,<br />

the Zambezi and the Okavango. The province <strong>of</strong> Cabinda, a major oil-producing area, is an enclave<br />

separated from the rest <strong>of</strong> the country by a part <strong>of</strong> the Democratic Republic <strong>of</strong> the Congo.<br />

Religion: Mostly Christian with a small majority Roman Catholic.<br />

30<br />

M


GLOBAL AFRICA NETWORK<br />

Founded in 2004, Global Africa Network Media (Pty) Ltd (GAN)<br />

is a business-to-business print and digital media<br />

company based in Cape Town, South Africa.<br />

A proudly-<strong>African</strong> publisher <strong>of</strong>:<br />

POWERING MINING<br />

IN AFRICA<br />

The rise <strong>of</strong> the mini-grid<br />

and the captive model<br />

ENERGY PARTNERSHIPS<br />

MUST BENEFIT SOCIETY<br />

Localisation can support<br />

women and children<br />

BLOCKCHAIN IS A<br />

DRIVER OF INCLUSION<br />

COUNTRY PROFILES:<br />

GHANA & KENYA<br />

THE EFFECT OF TRAVEL<br />

BANS ON TOURISM<br />

THE JOURNAL OF<br />

AFRICAN<br />

BUSINESS<br />

SEPT / OCT / NOV 2022<br />

<strong>Journal</strong> <strong>of</strong><br />

<strong>African</strong> <strong>Business</strong>,<br />

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South <strong>African</strong><br />

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title, and nine regional<br />

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provinces as business<br />

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INSPIRED BY AFRICANS<br />

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OTHER QUARTERLY TITLES INCLUDE:<br />

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publication and <strong>of</strong>ficial publication<br />

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GAN has considerable experience in creating and publishing custom print<br />

and digital publications, including targeted Investment Prospectuses.<br />

See www.globalafricanetwork.com/e-books


COUNTRY PROFILE<br />

MAURITIUS<br />

The financial services sector is vibrant and growing.<br />

Photo: Mustafa Omar on Unsplash<br />

Photos: Pixabay<br />

Mauritius gained independence from the United Kingdom in 1968. English<br />

is the <strong>of</strong>ficial language <strong>of</strong> the legislative body but Creole is the dominant<br />

language with Bhojpuri and French accounting for about 10% between them.<br />

Just two years before independence, Britain expelled about 2 000 residents<br />

<strong>of</strong> the Chagos archipelago and leased islands to the US for 50 years. A military<br />

base was built on the largest island, Diego Garcia. In 2019 the UN International<br />

Court <strong>of</strong> Justice gave a non-binding legal opinion that the islands had not been<br />

legally separated and that Britain should end its control.<br />

Former President Sir Anerood Jugnauth became Prime Minister for the<br />

third time in 2014 but resigned in 2017 to make way for his son Pravind Kumar<br />

Jugnauth, the leader <strong>of</strong> the Militant Socialist Movement party. The president<br />

is head <strong>of</strong> state in a Westminster-type system and the role is largely symbolic.<br />

Capital: Port Louis. Other towns/cities: Vacoas-Phoenix, Beau Bassin-Rose Hill, Curepipe,<br />

Quatre Bornes. Population: 1.3-million (2022). GDP: $14-billion (2019). Real GDP per capita:<br />

$19 500 (2020). Currency: Mauritian rupee. Regional Economic Community: Southern<br />

<strong>African</strong> Development Community (SADC), Common Market for Eastern and Southern Africa<br />

(COMESA), Indian Ocean Rim Association. Landmass: 2 040km 2 (all islands), Island <strong>of</strong> Mauritius<br />

1 864km 2 . Coastline: 177km. Resources: Sugar cane, tea, banana, pulses, potatoes,<br />

fish. Main economic sectors: Sugar milling, textiles, tourism, financial services.<br />

Other sectors: Mining, chemicals, metal products, transport equipment, machinery.<br />

New sectors for investment: Creative sector (film), higher education, ICT, retail, medical<br />

tourism. Key projects: Positioning as a hub for the rest <strong>of</strong> Africa for logistics, re-export<br />

and trade. Smart city projects. Chief exports: Clothing, sugar cane,<br />

processed fish, molasses, cut flowers. Top export destinations:<br />

France, US, UK, South Africa, Madagascar, Italy, Spain.<br />

Top import sources: India, China, France, South Africa.<br />

Main imports: Chemicals, equipment, foodstuffs,<br />

manufactured goods, petroleum products. Infrastructure:<br />

Export Processing Zone; Sir Seewoosagur Ramgoolam<br />

International Airport at Plaisance about 50km from Port<br />

Louis, an airstrip at Plaine Corail on Rodrigues; 2 150km<br />

<strong>of</strong> roads, 98% paved; Port Louis harbour has a container<br />

terminal and terminals for sugar, oil, wheat and cement.<br />

ICT: Mobile subscriptions per 100 inhabitants: 150 (2020).<br />

Internet percentage <strong>of</strong> population: 65% (2020).<br />

ICT Development Index 2017 (ITU) ranking: 1 in Africa, 72 in<br />

world. Climate: Maritime subtropical modified by south-east trade<br />

winds. Cyclones can occur. Warm, dry winter (May to November); hot, wet, humid<br />

summer. A fertile central plateau is surrounded by mountains and the island is ringed by coral<br />

reefs. Religion: Hindu, Christian about 30% (majority Roman Catholic), Muslim, other.<br />

32

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